Q1 Outlook 2021: Rays of light
We remain long risk assets, and are minded to increase this stance, as economic normalisation is on the horizon and policymakers remain supportive
As we start 2021, there’s much to worry about – from the new wave of COVID-19 to the shocking scenes in Washington, D.C. But there is also cause for optimism, with a new US administration set to take office and the vaccine rollout gathering steam.
Our investment outlook plays into the theme of normalisation. The global economy is early in the cycle and policymakers remain very supportive. Stocks may look expensive in absolute terms, but on a relative basis, we believe the equity risk premium remains attractive.