Last week we recommended an ETF Securities White Paper on Mega Trends and I thought I would follow that up with a bit more of a round up of the various views on investment themes for 2021. Here are some links to some thematic research from the global investment houses.
From that research I have pulled a list of investment themes both positive and negative. Here's my list;
Healthcare - some sectors of the healthcare industry are already expensive (Biotech) but some such as the Pharma industry are interesting defensive plays.
Transformative Technology - "Adaptive businesses are able to increase productivity and respond more swiftly to changing client needs and market developments. Such firms are well-positioned to outperform."
Small Caps - "Small caps typically outperform in periods of economic expansion."
Sustainability - "Investor interest in companies with a strong environmental, social, and governance (ESG) background received an additional boost when the pandemic struck. And these companies delivered, showing that their responsible business practices made them more resilient in a suddenly worsening business environment."
Dividends - "II would anticipate investors embracing dividend-paying stocks as an alternative to lower-yielding fixed income instruments."
Inflation risk - The debate still rages on inflation, some saying it is inevitable and some saying the risks are significantly overblown.
Valuation risk - US large cap valuations " The S&P500 PE for December 11, 2020, was 28.65, compared with a 10-year average P/E for this index of 18.40. "
China - Despite recent regulatory issues in China most of the pundits remained positive for the medium term outlook.
Click on the table below to see some of the ETF's in the sectors themed above. Or look up each ETF in the Accument App