Despite a turbulent period, global markets now look to be on the road to recovery. Policymakers are continuing to provide support with spending plans and low interest rates, and it’s hoped that vaccines will enable more normal activity to resume. There will, inevitably, be some bumps along the way so understanding what the coming months might bring is a useful step in deciding how to frame your investment strategy.
Our recent webinar considered where markets are today and how the global outlook may evolve over the coming months and years. It also touched on the likely path of inflation, fiscal policy and the rising importance of Asia. Our keynote speaker was Gary Dugan, CEO of Purple Asset Management.
The webinar noted that global market recovery is currently being driven by the US, and particularly by the Biden administration’s spending plans, which total between £1.6 trillion and £2 trillion. This extraordinary amount, and one which certainly isn’t being mirrored in other countries, is significant enough to be a key driver of growth around the world.
Missed the webinar?
Watch the full recording here.
Another key factor in the recovery will be the power of Asian markets. Currently, global investment portfolios are highly weighted to the US, even though the US economy totals 328 million people and has a GDP of 1.9%, compared to Asian markets with 3.2 billion people and GDP of 5.5%. With Chinese and Indian economies likely to be the biggest in the world in five years it’s to be expected that investments will shift away from the US in the months and years ahead.
For advice about any aspect of investment planning please contact your nearest office.