Asset Allocation Strategy
The Global Investment Landscape in 2021
Mon 21st December, 2020

Buoyed by the global roll-out of multiple COVID-19 vaccines, we think the pace of global GDP growth in 2021 will be close to the fastest in 50 years. Of course, this comes after 2020 saw one of the deepest (albeit short) contractions on record, but it will be a remarkable recovery nonetheless with the global share market revival poised to extend through 2021.

While 2021 will start on a soft global growth footing, risks are biased toward upside economic surprises later in the year. Assuming a successful vaccine roll-out, we anticipate a sustained relaxation of restrictions in many advanced economies in the second quarter, triggering a strong acceleration in growth by mid-year that will extend through the second half.

It may take a few months to crystallise; however, the ultimate market narrative in 2021 is likely to be one of synchronised global growth. In our final asset allocation report for the year we share our global outlook for 2021, examining:

  • Cyclical and structural shifts in demand
  • Global and local equities in 2021
  • The benefits of a broader global recovery on China and emerging market performance
  • Movement in global bond yields
  • Continued US$ weakness
  • Potential risks to our strong recovery view

    Disclaimer and disclosures

    Recommendation structure, definitions and the Financial Services Guide (“FSG”) can be found at www.wilsonsadvisory.com.au/disclosures.

    Disclaimer

    This document has been prepared by Wilsons Advisory and Stockbroking Limited (AFSL 238375, ABN 68 010 529 665) (“Wilsons”) and its authors without consultation with any third parties, nor is Wilsons authorised to provide any information or make any representation or warranty on behalf of such parties. Any opinions contained in this document are subject to change and do not necessarily reflect the views of Wilsons. This document has not been prepared or reviewed by Wilsons' Research Department and does not constitute investment research. Wilsons makes no representation or warranty, express or implied, as to the accuracy or completeness of the information and opinions contained therein, and no reliance should be placed on this document in making any investment decision. Any projections contained in this communication are estimates only. Such projections are subject to market influences and contingent upon matters outside the control of Wilsons and therefore may not be realised in the future. Past performance is not an indication of future performance.

    In preparing the information in this document Wilsons did not take into consideration the investment objectives, financial situation or particular needs of any particular investor. Any advice contained in this document is general advice only. Before making any investment decision, you should consider your own investment needs and objectives and should seek financial advice. You should consider the Product Disclosure Statement or prospectus in deciding whether to acquire a product. The Product Disclosure Statement or Prospectus is available through your financial adviser.

    Wilsons and Wilsons Corporate Finance Limited (ABN 65 057 547 323, AFSL 238 383) and their associates may have received and may continue to receive fees from any company or companies referred to in this document (the “Companies”) in relation to corporate advisory, underwriting or other professional investment services. The directors of Wilsons advise that at the date of this report they and their associates may have relevant interests in the securities of the Companies. Please see relevant Wilsons disclosures at www.wilsonsadvisory.com.au/disclosures.

    • Share This Article

    Written by

    David Cassidy , Head of Investment Strategy

    David is one of Australia’s leading investment strategists.

    Related articles