Security analysis and portfolio management

In a sign of growing anxiety among policymakers, the Bank for International Settlements (BIS), the so-called central banks’ bank, warned on Monday (7th December 2020) of the “daylight” between elevated valuations and persistently uncertain economic conditions. “While markets have moved in the right direction in response to news about the vaccine, they are above or close to the levels that prevailed before the pandemic, when questions about overstretched valuations were already present,” said Claudio Borio, head of the BIS monetary and economic department. Critically assess how the financial markets globally reacted to the news of Covid-19 vaccine.