(Finance Exchange)While the COVID-19 pandemic led to social and economic uncertainties all around the world, a senior Morgan Stanley strategist said that the upcoming year could bring a change in the narrative.
Andrew Sheets, Chief Cross-Asset Strategist for Morgan Stanley Research, said that the upcoming year could bring a return to normal from an investment perspective, after a year of chaos.
Even as challenges remain, the global recovery is sustainable, synchronous and supported by policy, following much of the ‘normal’ post-recession playbook, Sheets said in a Global Investment Outlook 2021 report.
The expected normal outlook rests on sustaining the V-shaped recovery which began in May this year, leading to a 6.4 per cent global GDP growth in 2021 and price appreciation for a wide range of asset classes, he said.
Morgan Stanley expects 25-30 per cent earnings growth across major equities markets. Sheets said that in 2010, investors questioned the market rebound’s sustainability, but that period marked the start of a long bull market.
“The lesson from 2010, which we think also applies to 2021, is that the cycle usually wins out,” he added. The report has chalked out a few key takeaways from the 2021 global investment outlook.
