‘FAMAGs can navigate change in macro environment’
The impending economic recovery may well mean the big tech stocks will cede their market leadership for the time being. But the FAMAG stocks remain attractive on a long-term basis, says Julian Cook, portfolio specialist for US equities at T. Rowe Price. Apart from one though.
Saxo Bank’s 10 outrageous predictions for 2021
An energy revolution thanks to an algorithm and a basic income that is finally on its way? After a year like 2020, things couldn’t get much crazier, but Saxo Bank is playing to this with its 10 “outrageous predictions” for 2021.
Lux PM Bettel: ‘Taxes are poison’
‘Taxes are poison for companies hit by the crisis,’ Xavier Bettel told a Luxembourg for Finance online panel on Thursday. He added that when seeking to restore balance to state finances ‘we want to avoid any tax rise.’ Instead ‘maybe we’ll have to cut or delay some projects.’
That said he had no regrets about the government’s aggressive support measures for the Luxembourg economy. ‘This money has been some of best investment we could do,’ he said.
State Street maintains non-sustainable ETF offering
In response to the SRI trend, State Street Global Advisors (SSGA) has been expanding its offering of ESG products. But these funds do not replace non-sustainable variants, says Carlo Funk, head of ESG investment strategy for EMEA at SSGA.
‘2021: a great year for equities and commodities’
A car with two accelerators and no brakes. This is how Philippe Gijsels (pictured right), chief strategist at BNP Paribas Fortis, describes current monetary and fiscal policies. Consequently, he expects 2021 will be a good year for risky assets.
US high yield: opportunities in reopening trades and rising stars
The US Bloomberg Barclays High Yield Index has already risen by more than 30% since its low in March. But the big rally is now over, with the remaining opportunities now primarily in reopening trades and rising stars, according to Walter Kilcullen, manager of the Legg Mason Western Asset US High Yield Fund.
Janus Henderson: inflation of up to 5% in 2021
The world economy is set for strong growth next year, helped by a broad roll-out of the coronavirus vaccine which will restore confidence. But there is a downside to this development: it will be followed by a strong rise in inflation – of up to 5%.
Simon Ward (pictured), Janus Henderson’s chief economist, gives this forecast to clients in his macroeconomic outlook. He expects a long-term period of substantially higher inflation from 2021 onwards.
Capital Group : 'New defensive' investments in three charts
Traditionally, defensive stocks and sectors are ones that have been able to retain value despite economic upheavals. However, 2020 has seen significant headwinds for such investments, with value and dividend stocks no longer considered safe havens.
UBS AM: Europe and emerging markets to lead the dance in 2021
The medium-term outlook for generating reliable, meaningful yield has never been more challenging
‘Value outperformance is only just beginning’
The expected returns on US value stocks are attractive compared to growth stocks. As a coronavirus vaccine is now around the corner, the global economy will pick up next year. This will be supportive for long-term outperformance of value stocks, according tot Christian Correa, President and Chief Investment Officer of Franklin Mutual Series.