2021 Year Ahead Outlook2021 Year Ahead Outlook

BofA Global Research analysts share key themes, views and forecasts for the year ahead.

BofA Global Research analysts share key themes, views and forecasts for the year ahead.

Key takeaways

  • Video 1: Against a healthy macro & policy backdrop, we expect positive returns from equity & credit markets.
  • Video 2: The rally seen in 2020 is likely to broaden, leading to much greater rotation across asset markets.
  • Video 3: Globally, corporate profits could rise 20% or possibly even higher.

 

Video 1: Investment Landscape | Download Transcript

Video 2: Asset Class Rotation | Download Transcript

Video 3: Global Corporate Profits | Download Transcript

 

“We think the key investment themes for 2021 will be the vaccine, the reopening of the economy & society, and also the recovery in the economy after the recession of 2020.”

Michael Hartnett - Chief Investment Strategist, BofA Global Research

 

Key takeaways

  • Video 1: A number of upside and downside risks could impact economic growth.
  • Video 2: The labor market has been rebounding at an impressive pace but some challenges will linger.
  • Video 3: We believe the Fed will be committed to a low-rate environment.

 

Video 1: Outlook for Economic Growth | Download Transcript

Video 2: Labor Market & Inflation Outlook | Download Transcript

Video 3: Fed & Interest Rates | Download Transcript

 

"The services side of the economy…can come back in a significant way after the vaccine has been implemented."

Michelle Meyer - Head of U.S. Economics, BofA Global Research

 

Key takeaways

  • Video 1: The main story for 2021 will likely be the continued divergence across rates markets.
  • Video 2: In Asia, further appreciation in local currencies is expected, although heavy positioning may constrain the pace near-term.
  • Video 3: The USD will be driven by the outlook for risk/risk appetite and U.S. fiscal policy.

 

Video 1: Rates Market | Download Transcript

Videos 2: Outlook for Asia | Download Transcript

Video 3: USD & Key Drivers | Download Transcript

 

“Fundamentally, we believe that the permanent scars left by the pandemic in the Euro area will exceed those in the U.S. considerably.”

David Woo - Head of Global Rates, FX and EM Fixed Income Strategy & Economics, BofA Global Research

 

Michael Hartnett

Michelle Meyer

David Woo

Section

Market outlook and investment strategy

 

Key takeaways

 

  • Video 1: Against a healthy macro & policy backdrop, we expect positive returns from equity & credit markets.
  • Video 2: The rally seen in 2020 is likely to broaden, leading to much greater rotation across asset markets.
  • Video 3: Globally, corporate profits could rise 20% or possibly even higher.

"We think the key investment themes for 2021 will be the vaccine, the reopening of the economy & society, and also the recovery in the economy after the recession of 2020."

 

Video 1: Investment Landscape | Download Transcript

Video 2: Asset Class Rotation | Download Transcript

Video 3: Global Corporate Profits | Download Transcript

 

 

Section

U.S. economics

 

Key takeaways

 

  • Video 1: A number of upside and downside risks could impact economic growth.
  • Video 2: The labor market has been rebounding at an impressive pace but some challenges will linger.
  • Video 3: We believe the Fed will be committed to a low-rate environment.

"The services side of the economy…can come back in a significant way after the vaccine has been implemented."

 

Video 1: Outlook for Economic Growth | Download Transcript

Video 2: Labor Market & Inflation Outlook | Download Transcript

Video 3: Fed & Interest Rates | Download Transcript

 

 

Section

Rates, FX & emerging markets

 

Key takeaways

 

  • Video 1: The main story for 2021 will likely be the continued divergence across rates markets.
  • Video 2: In Asia, further appreciation in local currencies is expected, although heavy positioning may constrain the pace near-term.
  • Video 3: The USD will be driven by the outlook for risk/risk appetite and U.S. fiscal policy.

"Fundamentally, we believe that the permanent scars left by the pandemic in the Euro area will exceed those in the U.S. considerably."

 

Video 1: Rates Market | Download Transcript

Video 2: Outlook for Asia | Download Transcript

Video 3: USD & Key Drivers | Download Transcript