Asset Allocation Strategy
Markets Getting Another COVID Test
Mon 29th November, 2021

Europe appears to be entering its 4th wave of the COVID pandemic with a surge in case numbers across much of continental Europe.

Across the Atlantic in the US, case numbers have also begun to pick up again, though the virus is not seen as a major headwind for markets, with the inflation and monetary policy outlook still the focal point for investors.

Australia appears better placed going into our summer with a significantly higher vaccination rate than either the US or Europe and our booster program now well underway.

All in all, vaccines are largely holding the line against the most severe health impacts of the pandemic, and aggregate government mobility restrictions are unlikely to shift significantly. Recent significant trial success with new anti-viral drugs from Pfizer and Merck also adds to the case that the pandemic fades as an influence over the coming 6-12 months.

This suggests the global economic recovery will continue to progress in 2022 despite some near-term angst around a fresh COVID wave in Europe and the US.

Importantly, each successive wave has resulted in less economic and market impact. While we could see some rotation away from cyclicals again, we believe this pattern of market resilience to the pandemic will continue to hold true. Australia seems well placed to weather our own version of the next wave, albeit we will still have to digest higher case numbers in coming months.

About Wilsons: Wilsons is a financial advisory firm focused on delivering strategic and investment advice for people with ambition – whether they be a private investor, corporate, fund manager or global institution. Its client-first, whole of firm approach allows Wilsons to partner with clients for the long-term and provide the wide range of financial and advisory services they may require throughout their financial future. Wilsons is staff-owned and has offices across Australia.

Disclaimer: This communication has been prepared by Wilsons Advisory and Stockbroking Limited (ACN 010 529 665; AFSL 238375) and/or Wilsons Corporate Finance Limited (ACN 057 547 323; AFSL 238383) (collectively “Wilsons”). It is being supplied to you solely for your information and no action should be taken on the basis of or in reliance on this communication. To the extent that any information prepared by Wilsons contains a financial product advice, it is general advice only and has been prepared by Wilsons without reference to your objectives, financial situation or needs. You should consider the appropriateness of the advice in light of your own objectives, financial situation and needs before following or relying on the advice. You should also obtain a copy of, and consider, any relevant disclosure document before making any decision to acquire or dispose of a financial product. Wilsons’ Financial Services Guide is available at

All investments carry risk. Different investment strategies can carry different levels of risk, depending on the assets that make up that strategy. The value of investments and the level of returns will vary. Future returns may differ from past returns and past performance is not a reliable guide to future performance. On that basis, any advice should not be relied on to make any investment decisions without first consulting with your financial adviser. If you do not currently have an adviser, please contact us and we would be happy to connect you with a Wilsons representative.

To the extent that any specific documents or products are referred to, please also ensure that you obtain the relevant disclosure documents such as Product Disclosure Statement(s), Prospectus(es) and Investment Program(s) before considering any related investments.

Wilsons and their associates may have received and may continue to receive fees from any company or companies referred to in this communication (the “Companies”) in relation to corporate advisory, underwriting or other professional investment services. Please see relevant Wilsons’ disclosures at

  • Share This Article

Written by

David Cassidy , Head of Investment Strategy

David is one of Australia’s leading investment strategists.

Related articles