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We think the rally in risky assets will continue

While risky assets have already rebounded a long way since their lows in March, we think that they will generally make further ground over the coming months, albeit at a slower pace. That view is underpinned by our forecast that the global economy will continue to recover, even if more slowly and unevenly than during its initial bounce-back over the past few months, and that ample policy support will remain in place for as long as it is needed. Even though our forecasts are built on relatively conservative assumptions about the evolution of the coronavirus pandemic, the possibility that the recent resurgence of new cases forces renewed restrictions on economic activity remains the key risk to our generally optimistic views.

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