Growing Through Reopening Pains
In the first half of 2021, a remarkable US economic recovery took hold, driven largely by government stimulus, low interest rates, and increased efforts to distribute the COVID-19 vaccine. While we expect growth to continue in the second half of 2021, growth isn’t without risk.
Investors are reassessing which types of companies will thrive in the next stage of the recovery amid the recent rebound of value stocks. But we think the distinguishing performance factor will be a company's ability to generate sustainable earnings, regardless of its style classification.
Global stocks rose in the first quarter, but volatile trading patterns reminded investors that the road to normal will be bumpy. By carefully considering the risks that lie ahead, equity investors can prepare for the next phase of pandemic recovery.
Worried about rising rates? Inflation keeping you up at night? We’ve identified three strategies that will help keep your portfolio aloft.
The global economy is edging near a new, more inflationary regime, as base effects and commodity prices push up headline inflation. But the near-term global growth picture will be driven by the pace of COVID-19 vaccinations and fiscal stimulus.
Investments behave differently during inflationary periods. A few adjustments can prepare your portfolio for what may come.
We expect US core inflation to surge in the months ahead, as comparisons to low price levels of a year ago cause sizable fluctuations. Ultimately, supply should respond to recovering demand, bringing inflation down and facilitating easy Fed policy.
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