The world changed in 2020, and many of us may want to forget as much of it as we can. Even if we’re emotionally exhausted, we may want to derive some financial benefit from understanding how these changes have affected the capital markets. At BIP Wealth we hope that by reducing our analysis to a few key investment themes, it will be easier for all of us to extract ourselves from the political drama that continues to unfold. Our focus has always been on engineering investment opportunities that deliver the best risk/return ratio to our clients.
Here are our key themes for investment opportunities in 2021 (and beyond):
- The role of public market fixed income has changed for the worse.
- The relative opportunity for the stock market has improved.
- Extreme volatility might erupt at any time.
- Private markets can play a larger role in portfolios.
- Tax rates for investors will increase.
BIP Wealth Chief Investment Officer Eric Cramer explores these themes and more in his 2020 Annual Market Report.