WHAT IS THE investment THE NEW YEAR IS LOOKING UP The fundamental backdrop for stocks in 2021 remains favorable, with the U.S. economy expected to grow 4 percent (according to Bloomberg consensus). This is above the 2.5 percent 10-year average. Corporate profits are expected to grow 23 percent (according to Refinitiv). This is good news for stocks and formulating effective investment strategy.
Even if the economy in the first quarter of 2021 was depressed by increased virus-related restrictions across the U.S. and the world, we are optimistic the global economy will continue to rebound for the rest of the year. We also believe financial markets are on track to improve and that continuing a diversified investment portfolio strategy is the way for investors to go. Robust fiscal and monetary policy continues to provide key support. The U.S. fiscal stimulus package passed in December 2020 provides an additional $900 billion to aid consumers and businesses. Together with the CARES Act passed in April 2020, the total fiscal stimulus response is almost double that of the 2008 financial crisis. We are optimistic the global economy will continue to rebound for the rest of the year .
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