UBP Investment Outlook 2021 in a nutshell

2020 provided investors with a challenging roadmap which required both agility and conviction to navigate.

Anticipating a wholesale transformation of the structure of the global economy, we have favoured transformation themes in healthcare and technology to drive our equity allocations through much of 2020. Those secular trends should continue to spread as economies seek to pick up in the new year. The development of 21st-century infrastructure to address climate change and a new digital landscape should take centre-stage in this transition.

In 2021, a move from monetary-led to fiscal-led policy means shifting political landscapes in the US, UK, Europe and China will create both opportunities and risks for investors. For bond investors, a risk-managed approach will be prudent in the new year as defaults resulting from the health crisis continue to materialise. Meanwhile central banks are expected to be active, leading to a continuing US dollar bear market and a gold bull market.