Markets expect a perfect 2021. Will they get it?

People walk past the New York Stock Exchange (NYSE) on November 24, 2020 in New York City.

US stocks reached record highs on Friday as Wall Street's outlook becomes crystal clear: With Covid-19 vaccines on the way, investors expect the economy to undergo a spectacular rebound next year, sending shoppers on a spending frenzy and padding corporate profits.

Banks have issued a flood of 2021 forecasts reflecting this attitude, anticipating a sharp "V"-shaped recovery to take hold before long.

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