As an unusual and challenging year draws to a close, many investors may wonder what’s in store for 2021. The prospect of vaccines, a return to travel, and a more ‘normal’ life has given hope to a better year in terms of personal lives and has interesting implications for investing.
Kanish Chugh, Head of Distribution for ETF Securities, spoke to James Gerrish, Senior Investment Adviser for Shaw and Partners and author of the investment newsletter, Market Matters, about the trends leading into the new year.
Growth was the theme for 2020
In a year dominated by pandemic and bushfires, growth stocks were the key focus for investors, with many traditional value investments hit hard by lockdowns.
“Growth stocks are dominated by IT names. They've benefited from lockdowns, they've benefited from more movement online, etc, and they've also benefited a lot over the last couple of years with declining interest rates,” says Mr Gerrish.