On the Markets

 

WisdomTree continues to listen closely to the advisor community and create new resources for advisors as well as all investors to provide the guidance they need to maneuver the daily market changes.

Keep an eye on the situation as it unfolds with our latest news.

2021 Economic and Market Outlook

As we head into 2021, when focusing on the primary market signals such as GDP growth, inflation, Fed policy, earnings expectations, and the yield curve, we believe that the new year will enjoy a generally positive economic and market environment.

 

Read the Market Outlook

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DPD View

WisdomTree Office Hours

Advisors can now join our thought leaders as they discuss current markets and actionable investment solutions. This small-setting format allows for advisors to ask questions and enter into a dialogue, leveraging our thought leadership to navigate the market uncertainty. The schedule is updated weekly.

Thought Leadership


Nasdaq Trade Talks ETFs in 2020 and Outlook for 2021
Anita Rausch, Head of Capital Markets at WisdomTree, joins Jill Malandrino, Global Markets Reporter at Nasdaq, on Trade Talks, to discuss lessons learned with ETFs in 2020 and to provide an outlook for 2021.

Commentaries from Our Thought Leaders

For more daily insights from our thought leaders, from macro commentary to helpful tips on trading ETFs in times of high volatility, visit our blog.

Actionable Ideas for 2021

When focusing on what we believe are the primary market indicators, we conclude 2021 will enjoy a generally positive economic and market environment.

Given our cautiously optimistic view of the market environment throughout 2021, we believe the following themes will be prevalent and there are actionable ideas to capitalize on them should you agree with our position.

Quality & Income

Due to the sheer speed of the market’s snapback, it is imperative to consider Quality & Income as U.S. & global markets continue to deal with pandemic uncertainty. A focus on valuation in addition to fundamental profitability metrics make sense in two of the asset allocator’s largest asset classes, U.S. and developed market equities. And with interest rates at historical lows, investors will be tasked with looking for fixed income allocations without moving too far out in duration or sacrificing credit quality.

Actionable Investing Ideas:

Cyclical Rotation

After a 14+ year run that witnessed growth stocks consistently beat Value stocks, and the resultant historically large valuation gap that has opened up between the two, a rotation may finally be upon us. With the arrival of several vaccines, Value, which was hit hardest during the COVID crisis, has the most to gain from reopening and the return to normal.

Actionable Investing Ideas:

Emerging Markets

With the global economy on trend to improve during Q1 2021, accommodative central bank policies in both the developed and emerging world, and the potential for a softer U.S. dollar, we are seeing a favorable environment for local currency sovereign emerging markets debt. Additionally, pressure on corporations that have close ties to the Chinese Communist Party and the Kremlin is a prime catalyst for engagement with emerging equity mandates that exclude state-owned enterprises.

Actionable Investing Ideas:

Disruptive Growth

The COVID-19 pandemic has compressed a decade-long trend into the span of a few months in which we’ve seen cloud computing and tech-oriented growth leadership maintain notable performance. Those looking for thematic growth potential could consider our offerings.

Actionable Investing Ideas:

Reflation Trade

For those who wish to play off the potential for renewed inflation against concerns of elevated equity valuations, a long-awaited bull market in commodities may be in tow. While we expect the Fed to keep rates at or near zero, intermediate-to-long-dated Treasury yields could grind higher, steepening the yield curve in response to unprecedented monetary and fiscal stimulus.

Actionable Investing Ideas:

Basis Points Podcast with Kevin Flanagan