Investors have been advised to ‘get ready’ for the second half of the ‘bullish’ year of 2021.
INVESTORS “should restructure their portfolios” in the second half of 2021 as economies “transition from recovery mode to sustained growth,” according to Nigel Green, chief executive and founder of deVere Group.
Mr Green stated, “The first half of 2021 was all about recovery after the pandemic.” “It was a remarkable turnaround, with investor confidence skyrocketing after a difficult prior year.”
“The bullish feeling remains,” the deVere Group CEO stated, “but investors now need to be looking ahead to a new phase: a transition from recovery mode to sustained growth.”
Markets will definitely ebb and flow as new lines of business reopen as lockdowns throughout the world eventually ease and sectors get the opportunity to return in full force.
Other favorable aspects of the markets are also rising, including as consumer confidence and government spending, as well as the vaccination rollout’s success.
Mr Green, on the other hand, has issued a warning: “Investors should not become comfortable and should avoid the ‘buy everything’ mindset.”
“The optimistic feeling gripping global stock markets will hold,” Mr Green added, “but investors need prepare to rebalance their portfolios in the second half of 2021 in order to grow their wealth.”
“As we move through this transition period and the economic cycle continues to accelerate, investors should be prepared to examine and, if necessary, rebalance their portfolios in the second half of the year to build their wealth while avoiding risks.”
This is not to mean that the outlook for general investments will spiral as it did at the start of the pandemic; rather, rapid change is on the horizon, and accounting for it when adjusting one’s portfolio will be quite helpful, according to Mr Green.
According to the World Bank, global growth will increase to 5.6 percent this year, with the global economy ready to conduct its most strong post-recession rebound in 80 years in 2021.
According to Mr Green, “against this backdrop, investors will be aggressively looking to top-up their portfolios.”
“However, investors must be selective now more than ever in this turbulent and transitory time, since there will be clear winners and losers.”
Observing public reaction and industry support during the epidemic may provide a strong indication of future trends and who the “winners and losers” will be.
“Take, for example, investors,” says Brinkwire Summary News.