CIO Outlook 2021 by Jeffrey Lee, Director & CIO at Phillip Capital Management
- Bright Outlook Ahead
- Opportunities Amidst Crisis
- Identifying superior growth
We are cautiously optimistic on the outlook for markets in 2021, after a year like no other. The pandemic in 2020 has pushed the global economy into its deepest recession since World War II. Equity markets plunged in March, then rallied strongly following unprecedented support from central banks and governments. We see stronger growth and lower real yields ahead led by the roll-out of vaccines, lending support to elevated stock valuations. The politics of inequality will keep deficit spending high even as debt ratios hit historical levels globally. New central bank policy stances are likely to keep interest rates low even in the face of rising inflation. Stocks will trump government bonds in this environment. The pandemic has also accelerated structural trends underway such as the increased focus on sustainability, rising inequality, and the dominance of e-commerce at the expense of traditional retail… (Continued)
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