Have we reached a turning point to recovery?
- The world is turning the corner toward recovery. Economic growth is making a comeback. The International Monetary Fund (IMF) estimates that global GDP will climb 5.2% in 2021. But risks to recovery remain, chief among them a resurgence of COVID-19. Low rates continue to support asset prices. With interest rates seemingly “lower forever,” equity markets may move higher if investors flock to stocks in search of better returns than those offered by other asset classes. Read more… – Capital Group, American Funds
- After one of the most extraordinary and difficult years in modern history, we are all hoping for a better 2021 and there are good reasons for optimism. Multiple vaccines have been approved and, as they are distributed in 2021, the pandemic should finally draw to an end. After a very difficult winter, the U.S. economy should reaccelerate in the second half of 2021 as many shuttered service-sector businesses are able to reopen. – Dr. David Kelly, Chief Strategist, JPMorgan Funds
- Stocks should get a boost from an economic recovery combined with continued hyper-accommodative monetary policy, fiscal support for households and businesses and negative real returns on government bonds. We also expect the exuberance will lead to modest increases in inflation and interest rates further out the Treasury yield curve, causing stocks to rise, but also to underperform strong earnings growth. Read more… – Bob Doll, Chief Equity Strategist, Nuveen
As always, we continue to believe that one’s circumstances and risk profile should determine the appropriate mix of investments, and not media headlines. Please contact us if you ever have any questions or concerns about your accounts or any news you hear.
Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment, asset class, or investment strategy (including the investments and/or investment strategies recommended by the adviser), will be profitable or equal to past performance levels. Information in this commentary is gleaned from third party sources, and while believed to be reliable, is not independently verified.