2021 Midyear Market Outlook - Managing Reopening Expectations
Despite the significant pain the COVID-19 pandemic inflicted on our health and economy, markets have rallied aggressively. Throughout lockdowns and virus surges, investors were convinced that better days were on the horizon. Finally, those better days are here — with increased COVID-19 vaccination rates, massive fiscal stimulus programs and accommodative monetary policies bolstering the economy and earnings so far this year. Yet strangely, even as stocks extend their lofty 2020 gains, investors are growing anxious about the many challenges that still lie ahead. Markets have reached an inflection point as investors brace themselves for what could be a bumpier second half of 2021.