Industry Voice: Investment ideas for the next 12 months

Investors have rarely experienced such an extraordinary period.

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

Just as the 2020 shutdown of much of the global economy by the coronavirus pandemic was unprecedented, the recovery this year is likely to be unlike any that preceded it. Economic activity is reviving far more quickly than anticipated and has already produced a V‑shaped recovery in some countries and regions. Growth looks set to accelerate further in the second half of 2021, particularly in the US.

However, the economic policies of governments and investment fundamentals have both been reshaped in ways with which financial markets are still coming to terms, while a high degree of unevenness and uncertainty persist. We think this process will create both opportunities and risks in the second half of 2021, highlighting the potential benefits of an active approach to investing that involves creativity and thinking outside the box.

We are living in uncharted territory, with many of the typical features of an economic recovery turned on their heads: Valuations are elevated, personal savings are robust and debt levels are soaring. Nonetheless, we have identified five key themes we believe will drive the performance of markets over the coming 12 months and beyond.

 

 

Important Information

For professional clients only. Not for further distribution.

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.

The material is not intended for use by persons in jurisdictions which prohibit or restrict the distribution of the material and in certain countries the material is provided upon specific request.

It is not intended for distribution to retail investors in any jurisdiction.

This material is issued and approved by T. Rowe Price International Ltd, 60 Queen Victoria Street, London, EC4N 4TZ which is authorised and regulated by the UK Financial Conduct Authority. For Professional Clients only.

© 2021 T. Rowe Price. All rights reserved. T. ROWE PRICE, INVEST WITH CONFIDENCE, and the bighorn sheep design are, collectively and/or apart, trademarks or registered trademarks of T. Rowe Price Group, Inc.

Advertisement

Trustpilot