Long-term interest rates have risen significantly in recent months. Equities have, for the most part, continued their impressive uptrend despite the rise in bond yields, but signs of strain in the relationship are starting to emerge.

Shaped by 3 major trends - earnings upgrades, higher dividends and strong cash generation - while earnings and dividends have been negatively impacted for the market as a whole, the February reporting season has been well-received relative to expectations.

Despite the lingering shadow of COVID-19 in much of the world, we believe prospects for risk assets remain constructive over the coming year.

As we approach the halfway point of the February reporting season, the clear trend is that corporate Australia has bounced back strongly over the second half of CY20, with the improving domestic economy translating into improved earnings and dividends.

In our latest Behind the Strategy video, Wilsons Head of Investment Strategy, David Cassidy addresses equity market valuations, the impact of bond yields on asset markets, the A$, growth opportunities and asset allocation. Watch to learn more.

Clean energy stocks took off last year, with investors attracted to stocks and commodities associated with renewable energy. In the lead up to the US election, clean energy ETFs rallied, with a Biden win seen as being a key turning point for the global uptake in renewable energy. So, will Biden’s presidency usher in a new dawn for cleaner energy? And can this trend continue over the next decade?

The share prices of the major miners are trading at close to 12-month highs following an extraordinary 2020 that contained both a global recession and the largest global stimulus program witnessed post-war. This has investors rightly asking whether the party can continue?

The past year has seen some spectacular performances in a concentrated number of equity sectors and some alternative asset classes.

Bubbly price moves are raising concerns that many markets are becoming detached from reality and vulnerable to a major reality check. Indeed some commentators have gone as far as to label the entire US equity market as being in extreme bubble territory.