Towards a reduction in the sectoral dispersion of equity markets

The COVID crisis has caused a marked dispersion in the sectoral structure of economies, with troubled sectors and growing sectors. This has naturally led to a significant sectoral dispersion of stock market indices, linked to the dispersion of the situation of the different sectors (we look at the United States and the euro zone). But the very expansionary monetary policy will now continue for a long time , with very low interest rates and very abundant liquidity. This will at a certain stage drive investors to seek investments in financial assets whose prices have not yet risen much: they will then switch to troubled business sectors that are currently neglected, then leading to a reduction in the sectoral dispersion of equity markets.