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New Global Outlook

Our refreshed asset class views

  • Are you ready for a new investment order?

    The pandemic has changed how economies and societies operate. We believe this calls for a fundamental rethink of investment portfolios — starting now.

    We share three themes investors should be paying attention to in 2021.

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    Covid-19 has accelerated geopolitical trends such as a bipolar U.S.-China world order.

    We are likely to see an increased emphasis in both countries on seeking self sufficiency in critical industries of the future. This is why we believe investors need exposure to both poles of global growth.

    Learn more about our global 2021 outlook here.

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    The pandemic has added fuel to pre-existing structural trends such as an increased focus on sustainability, rising inequality, and the dominance of e-commerce.

    Strategic implication: We prefer sustainable assets amid a growing societal preference for sustainability.

    The euro area, for example, is putting green infrastructure and digitalization spending at the center of its economic restart efforts – helping speed up the transition to a low-carbon economy.

    Learn more about our global 2021 outlook here.

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    We see stronger growth and lower real yields ahead as the restart accelerates and central banks limit the rise of nominal yields – even as inflation expectations climb.

    Two things for investors to keep in mind:

    • Central banks have signaled they will be more willing to let economies run hot with above-target inflation by changing their policy frameworks to make up for prior inflation undershoots.
    • At the same time, the fiscal-monetary policy revolution risks greater political constraints on central banks’ ability to lean against inflation. We see central banks likely curbing nominal yield rises to prevent an unwanted tightening of financial conditions.

    Learn more about our global 2021 outlook here.

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