2021 outlook: portfolios need a broader mix as the pandemic prolongs the uncertainty
While investors can approach 2021 with optimism that an effective Covid-19 vaccine will be available, the path of the economic recovery remains unclear. A broader toolkit of investments is needed – not just the regions, sectors and strategies that have recently done well.
Asian high-yield bonds look increasingly attractive
In the world of fixed income, Asia can offer more income potential and relative value than many other regions. This should be particularly helpful to investors today, given historically low interest rates and concerns over high valuations.
This lunar new year, China has much to celebrate – including resilient economic growth, widespread success at suppressing Covid-19 and a steady transformation into an advanced economy. That’s why the ox is a suitable symbol for a country that continues to do the hard work needed to maintain its trajectory.
Expect US market momentum to continue – but watch for inflation
Investors can start the year with a positive outlook for the markets thanks to three drivers: higher spending from the new Biden administration, wider uptake of vaccines and continued Fed support. Consider layering in exposure to value and cyclical stocks, small cap and international assets – but keep an eye on rising inflation.