Insights

2021 Market Outlook — What to Expect in the Financial Markets This Year

2021 Market Outlook - image of a blue cloud with an arrow toward up as a track and dollar bills and a man walking up towards the finished line

As we look ahead to our 2021 market outlook, it’s impossible not to stop and reflect for a moment on what a journey the past year has been — and not only in the financial markets. COVID-19 has affected us all individually just as much as it has sent the financial markets and economies all over the world on a long and bumpy roller coaster ride that we likely haven’t seen the end of quite yet.

But things are decidedly looking up, with a vaccine now in circulation and a brighter outlook for many economic sectors.

Let’s take a quick look back at 2020 and then set our sights on the stock market forecast for 2021.

Looking back and planning forward

For Genus’ investment team, 2020 meant some big sector rotations as we worked to balance our portfolios in light of dramatic market fluctuations caused by COVID-19.

In other words, we sold a lot of energy and bank stocks and bought a lot of health care, IT and consumer staples in the early days of the pandemic, then we invested in industrials and value stocks later on.

In other words, we sold a lot of energy and bank stocks and bought a lot of health care, IT and consumer staples in the early days of the pandemic, then we invested in industrials and value stocks later on.

The keyword for 2021 will be hope.

Wayne Wachell

So what’s in store for 2021? “The key word will be hope,” says Genus CEO and chief investment officer Wayne Wachell. “It’s the beginning of the end of the pandemic with the vaccines arriving, and there’s enough money pumped out to keep the economy going. With a synchronized global recovery, we’re looking at projections of a 5% to 6% growth. It’s a hopeful year in terms of growth.”

In the longer term, Wachell sees interest rates beginning to rise, which would be good for banks, commodities and metals, and would also help energy prices and Canadian markets. “Those are areas that will take advantage of the global synchronized recovery,” Wachell says.

Another area to watch is impact investing. “Companies like Tesla are a de facto hedge against climate change,” says Wachell. “People are going to want to spend more money on companies that are putting these kinds of solutions forward.”

Watch our Market Outlook 2021 Webinar for More Insights​

As we look ahead to our 2021 market outlook, it’s impossible not to stop and reflect for a moment on what a journey the past year has been — and not only in the financial markets. COVID-19 has affected us all individually just as much as it has sent the financial markets and economies all over the world on a long and bumpy roller coaster ride that we likely haven’t seen the end of quite yet.

A few of the topics we have covered include:

– Global economic outlooks and trends

– How Canada fares in the post-pandemic recovery – Society’s new normal and what it means for the markets

– Economic sectors and stocks Genus will be favouring in 2021 and why

– Trends in ESG investing

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email

Client impact

“Graduating from a big bank to Genus was one of the best financial steps we've ever taken. Genus has delivered reliable asset growth despite our moderate risk tolerance. As our financial security has grown, we've also been the beneficiaries of a great client experience. The company's communications have been consistently transparent and informative, including educational webinars and a well-designed web portal where we can track investments daily. Most importantly to us, our portfolio manager has always responded swiftly and thoroughly to our questions and requests. ”
Martin T.
"Having relatively diverse financial goals and needs, along with a slight reticence regarding the stock market, Genus skillfully addressed all of our concerns, and put together a truly exceptional plan: Fossil free funds and a diversified investment portfolio, check; An effective Impact investment portfolio that coincides with our hopes and dreams for a better world, check; Professional advice and assistance to create a donor advised charitable fund with immediate charitable receipts for tax purposes, check. Returns? Way beyond our expectations! We even had some fun along the way and certainly enjoyed an incredible two-year start to what will be a satisfying long-term relationship with Genus."
Marc B.
“I love the service I get at Genus.”
Chris H.
“Leslie and I were fellow board members when we met twenty years ago. For the last ten she has been thoughtful in the construction of an investment strategy for my family and is executing the strategy as planned. The team at Genus has met my expectations and are a pleasure to deal with.”
Bob Q.
“For over 15 years, I have provided selection and performance evaluation of multiple investment managers for a significant family office. Leslie and Genus have been foundational for me in my role. I have always found Leslie and her colleagues to be insightful and proactive, and found the performance of their portion of the portfolio to be well above benchmarks. And they have been a great pleasure to work with.”
Douglas H.
“Genus is a very innovative firm. I am pleased to invest in their Fossil Free and Impact strategies that help me invest in line with my values.”
Marnie C.
“Great team of professionals. Excellent website and reporting. Responds to inquiries promptly. Very pleased with the process of changing from another company to Genus as well. Kudos.”
David L.
“Genus consistently provides a good, clearly explained, comprehensive picture of the general economic and financial situation, along with an excellent account of the investment decisions made in relation to this. Genus’ equally strong concern with clients’ questions and requests for further information is also a very important part of the service it provides.”
Allan S.
“Back in 1992 when I found myself at fifty with a substantial amount of money to invest, I knew just one thing — that I didn’t want to contribute to tobacco companies, arms manufacturers, or oil. But over the ensuing years the options for socially responsible investing have become far more sophisticated and I’m very happy that this is a big part of the Genus approach. I also very much appreciate the long-term relationship with my portfolio manager, Mary Lou.”
Ann P.

As seen in

Are you ready to make an impact
with your investments
?