09 Dec Review of 2020, outlook for 2021 – from pandemic to recovery
Key Points:
- 2020 was dominated by the coronavirus pandemic but shares saw okay returns on the back of policy stimulus and vaccine optimism – resulting in constrained but positive returns for balanced growth super funds.
- For 2021, the combination of massive policy stimulus and the prospect of vaccines allowing a return to something more normal by end 2021/early 2022 should see a decent rebound in economic growth.
- This plus lower interest rates is likely to see solid returns from share markets but poor returns from bonds. Australian shares are likely to be relative outperformers.
- The main things to keep an eye on are: coronavirus and vaccines; China tensions; inflation; as well as the hit to immigration in Australia and its impact on home prices.
