Industry Voice: Investment ideas for the next 12 months

Positioning your portfolio for the challenges and opportunities ahead

clock • 3 min read
Industry Voice: Investment ideas for the next 12 months

Investors will remember 2020 with mixed emotions. On one hand, it was the year of the catastrophic coronavirus pandemic, with its devastating human and economic tolls. On the other hand, it was a year that delivered strong positive returns across a wide range of financial markets—an extraordinary outcome given the destructive economic backdrop. Against such wildly contrasting dynamics, what lies ahead for 2021, and how might investors position their portfolios in response?

Trying to imagine the future is a difficult task in normal times. As the times we are living through are anything but normal, marked as they are by a very high degree of uncertainty, identifying the likely direction of events is even more challenging. Nonetheless, we have identified five key themes we believe will drive the performance of economies and markets over the coming 12 months and beyond:

  1. Post‑pandemic road to recovery
  2. Politics and the pandemic
  3. Policy and low yields
  4. Parting styles amid disruption 
  5. Pricey safety

 

1. Post‑Pandemic Road to Recovery

Investment Ideas: 1. Post‑Pandemic Road to Recovery

 

The pandemic is impacting markets in multiple ways. One is through its effect on the global economy—both in terms of the current slowdown and the eventual shape of the recovery. We believe the economy will continue to mend, but the recovery is likely to be choppy, potentially including a double‑dip contraction, before the rollout of vaccines is underway. Then, we hope, will we commence a slow return to some normality.

 

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Important Information

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This material is being furnished for general informational purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, and prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc. and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.

The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction.

Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources' accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date noted on the material and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price.

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