Y 2020 was a year that nobody planned, including analysts, traders, bankers and investors, many of whom were caught off-guard by not having properly diversified portfolios, which left them open to major financial risks.
Now, looking ahead to Y 2021, investment headwinds may exceed the tailwinds but, there are more major investment opportunities this yr than in the last 10.
Economist-Investor Bruce WD Barren notes: “Headwinds are the factors that likely weigh on growth and returns, and tailwinds are those that can be expected to boost growth and drive positive returns. Trump has laid a solid foundation in spite of the covid-19 pandemic.
“If the President-elect stays with this foundation, the economy should continue on an upward trend. Otherwise, what seems to be a positive positioning for economic growth will evaporate with an adverse effect on our economy and a short-lived history for one of the greatest economic recoveries in business history.
“Tariff reductions, appeasement with China, a reversal of our energy policies, higher taxes plus an open-door immigration policy are not the way to go. These are various negatives that will cause a reduction of liquidity in our capital markets and thus the return of employment stagnation.“
Beside the national issues like employment and vaccines, there are some geopolitical issues that will effect investor returns. They include the adjustment that will happen with BREXIT, US trade relations with China, which will become competitive in the tech sector, among other that are unseen at the moment.
Now for the major investment tailwinds in Y 2021.
They include the rollout of The China Virus vaccines, which means the Solid US economy can be expected to become stronger, and emerging economies will continue to grow on the promise of their central banks’ fiscal support packages offering a floor for the world’s financial markets.
So, if you know where to look, follow us here at Live Trading News, and act appropriately to build wealth, you will find lots of Key opportunities.
As the world moves ahead putting The China Virus chaos it is Key that investors ensure their portfolios are diversified across asset classes, sectors, currencies, and regions, so as to make the most of the opportunities that will present themselves throughout the yr.
Have a healthy day, Keep the Faith!