Resiliency Retested

The resilience of global markets will be retested in 2021. We expect the United States and China to outperform in the year ahead.

A Balanced Exposure to Risk Assets in the Evolving Recovery

Our current asset allocation reflects our baseline expectations for economic recovery. We continue to favor global equities, credit, and gold.

Central Bank Action Will Support Investment Grade Credit

Proactive central bank efforts will continue to be a substantial factor in 2021, translating to a favorable outlook for investment grade credit. Local-currency EM debt will also present a compelling opportunity; China warrants particular attention.

Growth and Quality Assets Are Most Likely to Deliver on Earnings

We favor equities compared with other asset classes – but earnings must come through. We believe growth and quality assets, which tend to be concentrated in the United States and in China, are most likely to deliver on earnings in the coming year.

Momentum Will Carry ESG Investing Far Beyond the Pandemic

We believe 2021 could be the transition year for concerted global action to tackle climate change and other environmental and social challenges.