Fund Managers Have a Message for Investors: Get Used to Rising Stocks
Richard Branson isn’t the only one headed for space. Stock markets are expected to continue their record-breaking ascent for the rest of 2021. If that’s exciting news, America’s top fund managers have a simple message — “get used to it.”
What’s fueling this ride? The economy’s performing better as COVID comes under control. Looking ahead, there are several positive signals for stocks:
- Corporations are posting big earnings after a disaster year.
- Vaccinations are accelerating globally — a key to further growth in the economy.
How do you get on this rocket? Focus on stocks. According to Bloomberg, they’re offering by far the best returns compared with other investments. Seema Shah of Principal Global investors has some words for investors (via BBG):
- Don’t set expectations too high as reopening optimism may already be factored into stock prices.
- Mega-cap tech companies providing cloud computing solutions could benefit from a permanent move toward cloud computing.
Expect a bumpy ride: When it comes to the stock market, it’s never one way up. Investors expect more volatility but still see the market as the place to be:
- Conditions aren’t in place yet for a big drop, says Claudia Panseri of UBS Global Wealth Management.
- There will be dips in value along the way, but these should be seen as buying chances, says Nigel Bolton of BlackRock.
Fund managers aren’t just bullish about 2021 — they see growth continuing into 2023. Are you along for the ride?