After an extraordinary contraction in 2020, the global economy will likely bounce back sharply in 2021 as vaccine rollout allows pent-up demand to materialize and supportive monetary and fiscal policies aid the recovery.
The powerful cyclical recovery likely lifts inflation almost everywhere, but large output gaps will cap the rise.
Emerging Markets Outlook
Emerging markets will benefit from improved global demand and the rebound in commodity prices, although the pace of recovery will vary greatly across countries.
The COVID crisis likely accelerated shifts in global supply chains, but the full impact will take years to fully materialize.
Global Capital Markets
Important forces across macroeconomic, political and public health dimensions continue to create tensions, but benign risk indicators and a mostly constructive outlook characterize our multi-asset portfolio positions.
Despite losing some important support mechanisms alongside dramatically tightened credit spreads, credit assets across both investment grade and high yield markets remain attractive.
This information is for informational purposes only, not to be construed as investment advice or a recommendation or offer to buy or sell any security. Investors should always obtain and read an up-to-date investment services description or prospectus before deciding whether to appoint an investment manager or to invest in a fund. Any views expressed herein are those of the author(s), are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may make different investment decisions for different clients. There are no guarantees regarding the achievement of investment objectives, target returns, portfolio construction, allocations or measurements such as alpha, tracking error, stock weightings and other information ratios. The views and strategies described may not be suitable for all investors. SSGA does not provide tax or legal advice. Prospective investors should consult with a tax or legal advisor before making any investment decision. Investing entails risks and there can be no assurance that SSGA will achieve profits or avoid incurring losses.
Performance quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted.
Images of NYSE Group, Inc. are used with permission of NYSE Group, Inc. Neither NYSE Group, Inc. nor its affiliated companies sponsor, approve of or endorse the contents of this program. Neither NYSE Group, Inc. nor its affiliated companies recommend or make any representation as to possible benefits from any securities or investments.