It was born in 1935 as a small Wall Street company. Today, it has more than 60,000 employees and is one of the world's leading financial companies. Their forecasts are usually taken into account and, after a year as exceptional as 2020, it is always advisable to listen to the specialists. These are, according to professionals, some of the trends and investment strategies for 2021.
There are several articles that have been published in Morgan Stanley about what the investment will be like in 2021. In OkBrokers we try to collect various options when it comes to investing and that is why we bring you one of those reports of this financial transatlantic.
Investment trends for 2021
The head of Emerging Markets, Ruchir Sharma, reviews what for him will be the characteristics of the markets in 2021.
1. An economy on the rise and fogged markets
Given that vaccine administration has already begun and governments are reluctant to reimoce lockdowns, he explains, savings are likely to fall as people dare to re-leave. The result could be that this year will be the opposite of the past: that the markets evolve sideways in the midst of economic recovery.
2. Inflation leaves behind its lows
For Sharma, depopulation, deglobalization, and declining productivity are putting upward pressure on consumer prices, and in this environment, a rapid rise in debt could be the shock to the beast.
3. Housing protection
House pricesare more likely to rise from now on. On the one hand, inflation expectations are rising and investors are turning to assets that are perceived as adequate protection against inflation. It earns whole, for example, the option to invest in gold,silver, Bitcoin or real estate.
4. Easy money comes to an end
The result of an increasingly lax monetary policy,says the specialist, has been a significant rise in asset price inflation. It is to be hoped that, when there is, if anything, the return of consumer price inflation and that this will lead central banks to tighten their policy again, this development will moderate.
5. A post-dollar world
The hottest investment of the year was Bitcoin,according to Morgan Stanley. Although skeptics still abound, they note, “there is a nearly ten times greater likelihood that millennials will choose to invest in cryptocurrencies than their baby boomer and younger generation peers will opt for that dollar-facing reserve currency.”
6. The revival of raw materials
Among the investment trends in 2021, it will be necessary to take into account, sharma believes, that, “if we combine a scarce supply and an increase in demand due to the recovery after the pandemic, the result is a revival of commodity prices”.
7. The return of emerging markets
When commodity prices rise, the many emerging economies that depend on commodity exports tend to evolve well. That's the economist's main reason for barroning a return of emerging markets, “coming out of their worst decade for yields since records began in the 1930s.”
8. The digital revolution
The evident acceleration of the digital revolution will also affect emerging markets, as “the cost of starting and operating businesses everywhere is being reduced, and this process is faster where the adoption of digital services is more agile, i.e. emerging markets.”
9. The rise of challengers
The lesson of the past is that tech giants often train their successors: IBM made Microsoft possible, and today numerous internet giants are platforms on which a large number of startupsthrive. From South Asia to South America, regional rivals are emerging in the fields of e-commerce and social media, which achieve success by capturing local character better than American or Chinese giants.
10. New habits from the point of view of the media
Sharma ends his presentation on investment strategies and trends for 2021,stating that “digital entertainment is doing away with traditional forms and that turnaround is likely to persist when the pandemic comes to an end.”
Where to invest in 2021
Whatever your strategy for this year, make sure you use regulated and reliable brokers. Here are some of the best online brokers reviewed by our team of publishers.