Russell Investments: 2021 Global Market Outlook

Russell Investments: 2021 Global Market Outlook

9 december 2020

Vooruitzichten
Outlook vooruitzicht (02)

Russell Investments have released their latest Global Market Outlook (GMO), in which Andrew Pease, Global Head of Investment Strategy, outlines the team’s current market views for 2021. Russell Investments’ market strategists maintain a moderately positive medium-term outlook in their latest quarterly report, thanks in large part to promising COVID-19 vaccine developments.

Some of the key points from Andrew Pease include:

  • Prefers non-U.S. equities to U.S. equities. “The post-vaccine economic recovery should favor undervalued cyclical value stocks over expensive technology and growth stocks. Relative to the U.S., the rest of the world is overweight cyclical value stocks” Pease said. 
  • Sees value in emerging markets equities. “China’s early exit from the lockdown and stimulus measures should benefit EM more broadly, as will the recovery in global demand and a weaker U.S. dollar” Pease said.
  • Sees high yield and investment grade credit as slightly expensive on a spread basis, but with an attractive post-vaccine cycle outlook. “Bank loans and U.S. dollar-denominated emerging markets debt in our view offer the best opportunities” Pease said
  • Views government bonds as expensive. “Low inflation and dovish central banks should limit the rise in bond yields during the recovery” Pease said. “U.S. inflation-linked bonds offer good value with break-even inflation rates well below the Fed’s targeted rate of inflation." 

Gerelateerde berichten