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European Central Bank (ECB) Governing Council member and Dutch central bank Governor Klaas Knot said Sunday, the ongoing rally in stock markets can be attributed to the growing expectations of economic recovery.

Key quotes

“We definitely see high valuations.” 

“Stock markets could be pre-empting the rollout of vaccines and the reopening of economies. We might be entering the roaring twenties, we don’t know.”

“Also interest rates are low, which is important for stock valuations and leads to higher stock prices.”

“If this becomes a race between individuals and professional investors, it is clear who will suffer in the end: the small investor.”

“2021 will likely have two faces. Vaccinations offer the perspective of a way out of this crisis and a much better second half of the year.”

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