2021 INVESTMENT OUTLOOK
We expect 2021 to be transformative for the structure of the global economy, supporting thematic investments in healthcare and technology along with infrastructure to address climate change. Fintech, sustainability and an economic recovery, particularly in China, should take the spotlight.
These developments ought to underpin demand for industrial commodities, gold and certain other precious metals. Stronger fiscal stimulus and a shifting political landscape in the US are fuelling expectations for ongoing US dollar weakness and a bull market for gold. In fixed income, the search for yield should encourage investors to explore less familiar markets, such as emerging-market and European bank debt, and to exploit opportunities in private debt and foreign exchange. However, caution is advised in relation to rising defaults resulting from the ongoing health crisis.
Overall, as in 2020, active risk management will be a vital tool in helping investors protect themselves against any disruption caused by the current transformation of the global economy.