Barclays predicts some stocks like BP could rally more than 50% next year

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Barclays has backed European equities to hit new highs in 2021, with 13% potential upside for the Stoxx 600 and two stocks offering more than 50% potential returns.

"Central banks and governments have ammunition left to help sustain the recovery, financial conditions are favourable, and there is pent-up demand given resilient disposable income, high savings and recovering profits," Emmanuel Cau, head of European equity strategy at Barclays, said in the report.

However, Barclays does see room for continued rotation away from "relative safe havens" such as bonds, cash, developed markets, U.S. growth and defensive stocks into lesser-owned riskier assets, such as emerging market and European equities, cyclical and value stocks."Given the large output gaps, we expect expansionary monetary and fiscal policies to remain firmly in place.

While sentiment has turned more bullish in recent weeks, Cau pointed out that positioning has generally yet to catch up, indicating that "the unwind of the two-year long flight to safety may just be starting."

 

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I predict a major bank and government's could collapse next year. Predictions and what ifs don't fucking matter.

nice

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