So there’s a lot of uncertainty currently in the market regarding 2021. Although I’m personally bullish about the market I think it will be useful if we try to list the points supporting each scenario for discussion trying to be open minded. I’m listing my view below let me know what you think.
- Low interest rates.
- Earnings & buybacks set to rebound in 2021.
- Low hurdles of expectations.
- New player in town (retail investors).
- ETF/passive investing trend.
- Reports of excess savings & fund managers staying on the side line.
- Large National Debt that needs to be regularized possibly by increased taxes.
- Inflation may comeback early bringing back interest rates.
- Low rates may cause bubbles across asset classes.
- Economic damage may materialize prior to the vaccine.
- New vaccine technology may have severe side effects.
- P/Es reaching unsustainable levels where stocks may not stay attractive.
- China trade war.