Covid-19 marks a sharp shift in the current financial markets regime, with implications for everyone. It is the trigger that is reviving the mean reversion process, which was sidelined during a long period of artificially high asset prices buoyed by ultra-loose monetary conditions and low inflation.

Equity valuations are now moving back in line with their long-term sustainable path. Central banks boost to asset valuations has reached a point of diminishing returns. Asset prices are discovering that they also have a reverse gear, as cycles always prevail after credit booms.