Animal spirits remain bullish, for now

This is no April Fool’s joke, the local bourse gained nearly 12% in the first quarter of 2021 marking the best first quarter on the JSE in 15 years and making it the best performing market in the world. This, as progress is being made to alleviate the Eskom crisis, but while the country still awaits the start of a proper vaccine rollout. For much of the first quarter, volatility in equity markets was triggered by a surge in US treasury yields as investors anticipate high inflation as a result of the US stimulus package. Overnight US President Joe Biden introduced a $2 trillion infrastructure plan for the United States on Wednesday, one that’s designed to establish the U.S. as a global leader on climate change with an overhaul of the transportation sector, energy, construction and more. The 'American Jobs Plan' looks set to add fuel to the inflation fire. Michael Avery speaks to Chris Holdsworth, chief investment strategist at Investec Wealth and Investment.