The outlook for markets in 2021 among investors and analysts is easy to describe: cautious optimism.
Almost universally, fund managers believe the year will bring a rebound in economic activity, supporting assets that have already soared in value since the depths of the pandemic crisis in March, but also lifting sectors that had been left behind. Bond yields are expected to stay low, lending further support to stock valuations.
But the virus mutation found in the UK, which caused a brief wobble in markets late this month, highlights how it is not always smooth sailing.
We asked investors: what can go wrong?
What can go wrong? Investors views on the big risks to markets in 2021
27 Dec, 2020 04:00 PM
7 minutes to read
Financial Times
Against a rosy consensus, dangers lurk in inflation, a virus setback, and the sheer weight of optimism.
The outlook for markets in 2021 among investors and analysts is easy to describe: cautious optimism. Almost universally, fund managers believe the year will bring a rebound in economic activity, supporting assets that have already soared in value since the depths of the pandemic crisis in March, but also lifting sectors that had been left behind. Bond yields are expected to stay low, lending further support to stock valuations.