Please click the link below to view Shane Oliver’s review of 2020 and outlook for 2021 for investment markets.
Key points raised are :
- 2020 was dominated by the coronavirus pandemic but shares saw positive returns on the back of policy stimulus and vaccine optimism
- For 2021 the combination of massive policy stimulus and the prospect of vaccines allowing a return to something more normal by the end of 2021 / early 2022 should see a decent rebound in economic growth
- This plus lower interest rates is likely to see solid returns from share markets but poor returns from bonds. Australian shares are likely to be relative outperformers
- The main things to keep an eye on are
- Coronavirus and vaccines
- China tensions
- Inflation
- The hit to immigration in Australia and its impact on home prices
