Global Market Outlook


Insights   •   Market Updates

The Relay Recovery


Rick Lacaille
Global Chief Investment Officer
Lori Heinel
Deputy Global Chief Investment Officer
Gaurav Mallik
Chief Portfolio Strategist
Simona Mocuta
Senior Economist

  2020 (%) 2021 (%)
Global -2.8 4.7
US -3.4 3.9
Australia -2.2 3.9
Canada -5.6 5.7
Eurozone -6.6 5.0
France -6.9 5.0
Germany -5.0 5.2
Italy -8.5 5.0
UK -6.7 4.4
Japan -4.2 2.5
Brazil -7.0 5.0
China 1.8 7.0
India -4.0 7.0
Mexico -7.0 4.0
South Africa -7.0 6.0
South Korea -0.7 3.2
Taiwan -1.0 3.2
Key takeaway Suggested action Implementation by ETF
Overall: We are in a neutral risk regime.  Implement select exposure to risk assets. Target asset class by region, sector or factor.   
Attractions of Fed support, strong cash balances and yields  Fixed income exposure biased towards corporate bonds.  
  • SPDR® Bloomberg Barclays 1-10 Year U.S. Corporate Bond UCITS ETF (Dist) IUCB LN
  • ·SPDR® Bloomberg Barclays Euro Corporate Bond UCITS ETF (Dist) EUCO LN
  • SPDR® Bloomberg Barclays 0-5 Year U.S. High Yield Bond UCITS ETF (Dist) SJNK LN
  • SPDR® Bloomberg Barclays Euro High Yield Bond UCITS ETF (Dist) JNKE LN
Uncertainty rising across the board Earn returns from dividends, not reliant on capital
  • SPDR® S&P® U.S. Dividend Aristocrats UCITS ETF (Dist) UDVD LN
Opportunity for carry and currency appreciation  Maintain a preference for large cap and developed market equities; Sectors can target style exposure
  • SPDR S&P 500 ESG Screened UCITS ETF (Acc) SPPY GY
  • SPDR® MSCI EM Asia UCITS ETF SPYA GY
  • SPDR® S&P® U.S. Technology Select Sector UCITS ETF (Acc) ZPDT GY
  • SPDR® MSCI World Health Care UCITS ETF WHEA NA
Expect a secular bear market in USD Use currency hedging for protection
  • SPDR® Refinitiv Global Convertible Bond EUR Hdg UCITS ETF* (Acc) SPF1 GY
  • SPDR® S&P® 500 EUR Hdg UCITS ETF (Acc) SPPE GY 
  • SPDR® MSCI ACWI EUR Hdg UCITS ETF (Acc) SPP1 GY
  • SPDR® S&P® U.S. Dividend Aristocrats EUR Hdg UCITS ETF (Dist) SPPD GY
Value in cyclicals if yield curve steepens Selective risk-taking in equities
  • SPDR® MSCI Europe Materials UCITS ETF STP FP
Inflation Risks Be alert and protect
  • SPDR® Morningstar Multi-Asset Global Infrastructure UCITS ETF (Dist) MAGI LN
  • SPDR® Bloomberg Barclays U.S. TIPS UCITS ETF (Dist) TIPS LN
  • SPDR® MSCI USA Value UCITS ETF ZPRU GY
Footnotes
Disclosures