Jennison Associates’ 1Q 2021 Outlook explains that while a broadening of the market will create near-term waves for 2020 laggards, secular growth companies should continue to benefit from the tsunami of digital transformation.
Event in 2020’s final quarter capped off a remarkable year for markets. Approval of two vaccines to inoculate against COVID-19 marked a watershed in the fight against the pandemic and sparked a broader rally in equities, notably benefitting shares of companies most exposed to the negative economic effects of the virus. The prospects for continued investor confidence and economic recovery in 2021 look promising. However, the pandemic continues to pose significant headwinds, and the incoming Biden administration will face early challenges in dealing with record infection rates and executing an effective vaccine distribution and administration program.