We forecast further gains in most risky assets between now and the end of next year. This reflects our expectation of a rebound in economic activity starting in the second half of 2020, alongside the continuation of massive monetary and fiscal policy support. Admittedly, risky assets have already recovered quite a lot of the ground that they lost after the outbreak of coronavirus. And two key downside risks remain. First, success in containing the virus could be reversed as economies reopen. Second, the consensus for policy support might break down. But assuming these risks do not materialise, we anticipate that the rally will continue.
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