Staying nimble in a volatile world: Three factors investors must watch in 2021

Coping with lockdowns and new variants

Equity markets delivered extraordinary returns in 2020. However, a new variant of the coronavirus is putting increased pressure on healthcare systems, with more and more countries locking down again.

This will have economic repercussions and, at a minimum, will defer some of the fundamental rebound investors have been anticipating. As we look out to the remainder of 2021, while we remain optimistic when analysing the return potential of global equity markets, we believe investors should be aware of three powerful trends. The Covid-on/Covid-off environment We expect the Covid on/Covid off trade to continue to flip-flop back and forth. Secular growth stocks, at the right price, should continue to compound good returns, but the setup into mid-year might imply a continuation of t...