2021 Market Outlook: Poised for Growth
By Crescent Team
Economic recovery, vaccine and portfolio considerations
Key observations from our 2021 Market Outlook:
Financial assets produced remarkable returns over the final nine months of 2020, characterized by rising equity valuations and narrowing credit spreads amid a global pandemic and a disjointed global economy.
The global economy is poised to achieve strong year-over-year growth and modest inflationary pressures in the first half of 2021, which should benefit risk assets and spread sectors. Wide-scale vaccination efforts may be the link to more sustained economic growth as the year progresses.
While it is uncertain if the market rotation that began in November will continue, we advise maintaining broad diversification within and across asset classes to ensure a portfolio does not unnecessarily hinge on any one economic outcome.
Our 2021 Market Outlook contains a look at financial market conditions, our 10-year capital market assumptions, and our investment themes for 2021.