Our four crucial investment themes for 2021 are politics, COVID-19, technology regulation and investing for income. We have created a series of articles to explain why we have chosen each of these themes, and share our predictions for the year ahead. Just scroll down and click to read them.
Stay ahead of investment opportunities in 2021
Politics – one of the most important influences on markets
What will happen in 2021? Populism and partisanship are everywhere. China's influence is increasing. Brexit will affect the UK economy, but could also bring opportunities. Taxes may rise – not only in the UK - and climate change is high on many politicians’ agendas. While the last five years of political tension in Western democracies may have subsided, other political risks will doubtless emerge. Our investment strategy will continue to take close account of the political environment.
How COVID-19 is impacting the world of investment
The coronavirus will continue to dominate markets in 2021. Our article explains why Asia and China will stay strong, why the US dollar will decline, and how this will affect investors. Our experts will monitor COVID's financial impact and keep a close eye on the vaccine rollout. And we will be ready to adapt our investment strategies if the outlook changes.
Will the technology giants stutter in 2021?
Tech companies achieved stellar performances during lockdown. Will this continue? We look at the pros and cons of investing in tech companies. Will values plummet? Will regulators try to break them up into more controllable chunks? Should we ignore China's record on human rights? Our tech experts are constantly looking for new opportunities in tech companies, while watching out for lurking dangers.
The hunt for investment income
Do you have cash savings? To be worth holding, cash needs to offer returns above inflation – but it's a long time since that was true, and UK interest rates are unlikely to rise meaningfully in 2021. Take a look at your asset allocation: you may need to discard underperforming cash balances and consider moving into equities; there are some attractive opportunities available.
IMPORTANT: Investment involves risk. The value of investments and the income from them can go down as well as up and you may not get back the amount originally invested. Past performance is not a reliable indicator of future performance.