Business
In this episode we’ll be looking at why equities could win out over bonds in the second half of 2021.Investors are heading into the second half of 2021 in a buoyant mood after an encouraging first half of the year for markets, supported by accommodative policy and rising growth expectations1. Though the global growth spurt may peak sometime this year, in this episode, we suggest the fundamental backdrop for equities remains positive. Private consumption, the driving force for the GDP expansion and company earnings, is underpinned by healthy finances. Higher inflation could create more market volatility. The prospect of higher interest rates could disproportionally affect the US and we see more opportunities in non-US stocks. Source: 1 Refinitiv Datastream, data as at 29 June 2021SUBSCRIBEStay up to date with our latest insights, subscribe to our mailing list here and choose the topics you’re interested in: https://bit.ly/2SKomDqGET IN TOUCH:Have any feedback? We're listening, email us at: podcast@smithandwilliamson.comFOLLOW US:Twitter - @SmithWilliamsonLinkedIn - @Smith&WilliamsonThis episode was recorded on 01/072021Capital at risk. Please remember the value of investments and the income from them can fall as well as rise and investors may not receive back the original amount invested. Past performance is not a guide to future performance.This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned.Smith & Williamson Investment Management LLPAuthorised and regulated by the Financial Conduct Authority. Registered No 580531