Markets hated uncertainty but there was now some certainty about the way the economy behaves through lockdowns, he said.
We had seen that in the latest reporting season where even lockdown-affected companies like retailer Kathmandu had performed well.
"Investors are choosing to look through that, as opposed to punishing them like they did last year".
With markets handling the pandemic and the immediate prospect of interest rate hikes receding, it was harder to see what would halt the market rise, Taylor said.
Ongoing supply issues likely did present some threat as they looked to be a feature of the Covid economy for some time yet.
"We keep hearing about these [micro] chip shortages for example. We know that chips go into everything," he said.
"That could be a reason that growth stays the same while inflation remains stubbornly high.
"So those supply issues could have an effect on inflation for longer than we're expecting".
It was clear from the ongoing issues with Delta that Covid was not going to go away in a hurry, Taylor said.
"That probably means our expectations are a bit too optimistic about when we can reopen to the rest of the world".
The evidence from the US with the resurgence of Delta was that the stocks starting to perform well again were those work-from-home type brands, he said.
"The ones that are suffering are hospitality and travel. So that's another thing to keep an eye on".
- The Market Watch video series is produced in association with Pie Funds. View the original article here.