• Investors’ doubts disappeared quickly last week and equity markets have gone back towards the highs of January. The re-opening theme is back in vogue and has further to go but prices are moving quickly. Policy developments, falling Covid19 cases and increasing momentum in vaccinations were the main drivers.• US fiscal policy is getting ever more expansive. We got a fiscal package earlier than expected in December and now looks like we will be getting another towards the top end of the range by March / April time as the Democrats decide to go it alone. This is key for the re-opening theme as much of the spending is geared towards plugging holes in the economy due to shutdowns rather than any new growth plan. • The earnings season remains extremely positive. In the US earnings are now up 6% YoY and seven of the eleven sectors are delivering double digit earnings growth. With further stimulus to come the forecasts are likely like to rise further.

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