A new hope.
Following the 2020 deterioration of the global economy, there is a relatively low growth hurdle in 2021 and much to be excited about including the approval of multiple efficacious vaccines around the globe. We have only scratched the surface in global vaccinations and it is a race against time as vaccine availability converges with rising COVID-19 cases (and strain mutations), influencing economic stability for at least the next 12 to 18 months.
Despite the challenges, consensus is for robust economic growth in 2021 and in 2022 – optimism that is supported by an unprecedented amount of monetary and fiscal policy injected into the global economy. Risk assets began pricing the economic recovery during the fourth quarter and into 2021. While we believe that inflationary pressures are building, the risks are likely not in 2021 as there remains ample slack to absorb the rebound in demand. Longer term, however, fiscal pressures are building. In this Outlook we share our views on how we believe investors should be positioned in the quarter and year ahead.
Your Edge Team