Australian Stocks May Shed Laggard Tag in 2021
Bloomberg
12/17/2020
Jackie Edwards
(Bloomberg) -- For many investors Down Under, 2020 was a year to forget. Australia’s stock market struggled to regain ground during the pandemic, even as many others like the U.S. surged as investors continued their love affair with all things tech.
Next year will likely be a different story: With a vaccine-fueled global rebound benefiting cyclical shares, Australian stocks are set to shine.
Strategists from AMP Capital Investors Ltd. and Commsec expect the local benchmark to reach a record high in 2021, while Macquarie Group Ltd. forecasts double-digit returns amid a recovery in earnings on economic stimulus and rising commodity prices. The S&P/ASX 200 Index is 5.7% below its record reached in February this year.