After record-strong gains in US equities in recent months, our price targets would imply some consolidation in the coming weeks but with prices ultimately moving higher. Equities should be supported by the very strong policy response to Covid-19 and a strong US economy into next year.

 

However, no matter how much research is done, the one certainty in life is the existence of uncertainty. If nothing else, the current health crisis has demonstrated this. Thus, the product in subscription comes with a 97% capital protection at maturity. In addition, each product participates in any price move, positive or negative (twin-win), in the respective Index (S&P 500 or EURO STOXX 50) from the strike level of 100%, as long as the respective barriers are not hit.

 

The product may be suitable for investors looking to put some cash to work, want to protect some of their equity exposure after the recent gains and/or expect a setback even if the longer-term trend is upward.