Investors face a multitude of challenges in 2021. Will inflation be a problem? How will new government initiatives affect the market? And will volatility continue?
Below, we list the top 10 themes investors may need to consider in 2021.
Probability of a spike is low, too many deflationary forces still at play (demographics, tech, oil)
New digital store of value? Will decentralized finance (DeFi) continue its expansion?
8. Monetary and Fiscal Stimulus
7. Political Uncertainty
GA runoffs and a potential Dem sweep? Policy implications of a change in party in power
6. Secular Growth Trends
Going Digital (“stay-at-home” trade), Sustainability & DEI/ESG
5. Elevated Valuations
It’s all relative, global equities are expensive, even more so for bonds!
4. High Volatility Regime
Not to be confused with a down market, because volatility cuts both ways
3. Emerging Markets
Brightest star in the equity asset class universe
2. High Frequency Data
The consumer is still consuming, but still very much living in a “stay-at-home” world
Upside and positive revisions required in 2021 for markets to grind higher