How the Return to “Normal” Could Reshape Markets
Key Takeaways
- A normalization of the global economy in 2021 could lead to the reversal of some decade-long market trends: value stocks potentially outperforming growth, non-U.S. equities taking the lead over U.S. stocks and interest rates rising.
- Still, uncertainty remains about the pandemic’s trajectory, and acute stress in small businesses could lead to higher joblessness, weighing on economic growth.
- During the pandemic, investors moved a sizable amount of money into cash. One key indicator for the direction of markets in 2021 will be whether that cash gets redeployed into riskier assets.
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C-1220-35142 12-30-21