Hi John,

Carl, VP Content, here.

There’s a lot going on in the markets right now, so I thought it might help to let you know what the Finimize analysts are focusing on. You’ll notice us circling back to these same themes over the next few weeks and months, and it’s well worth keeping them in mind to help you make your very own investment decisions.

Theme 1: The US Federal Reserve

Stock and bond market valuations are high at the moment, but they’re actually reasonably priced relative to record-low interest rates. That could all change, though: stock prices could collapse if central banks so much as hint at raising interest rates.

That’s why it’s so important to keep an eye on the US Federal Reserve and any future rate hikes: other central banks will probably take their cues from its actions.

Related Insights:

• How to protect your portfolio from rising rates
• What you might be getting wrong about interest rates

Theme 2: Green Wave

US president Joe Biden signed a string of executive orders last week, and all eyes are on the $2 trillion of clean energy spending expected to follow. And if the world’s largest economy is thinking green, you can be sure its impact will be felt across the globe.

It stands to hit traditional oil and gas firms, utilities companies, and energy-related commodities the hardest – bad news for them, maybe, but potentially good news if you’re looking for some exciting new investment opportunities.

Related Insights:

• How you can profit from Biden’s green spending plans
• Why water – yep, water – is such big business

Theme 3: Coronavirus Recovery

Economic growth is expected to bounce back as the world recovers from the pandemic, which is good news for company earnings. But the virus’s effects on society are worth bearing in mind too, with coronavirus having widened the gap between the world’s richest and poorest.

So we’re watching out for how investors are shifting their asset allocation (e.g. stocks vs. bonds) as well as their allocations within assets (e.g. growth vs. value stocks) – not to mention whether growing inequality will threaten geopolitical stability.

Related Insights

• Three ways to profit from the coronavirus vaccine rollout
• How “free” trading apps sell you to make money

Theme 4: Emerging Markets

Emerging markets tend to do well when global trade is improving, commodity prices are holding up, and the US dollar is weak – three things expected to happen this year. Throw in the regions’ cheaper valuation and higher earnings growth and… well, it’s worth paying attention to – especially with US stocks looking so expensive.

So we’ll be helping you keep an eye on trends like the rising middle class in countries like India and China, and what their recovery from the pandemic means for their long-term economic growth.

Related Insights

• Three reasons emerging market stocks are more attractive than American ones
• Why 2021 is the year for emerging markets

So that’s us. But what themes are you keeping your eyes on this year?  Let us know, and we’ll see if we can share our insights on the matter.

Best wishes,

VP Content