Your Money
For as crazy a year as 2020 has been, the investment landscape will go down in history as one of the better ones. That certainly wasn't the popular opinion in the depths of the March shutdown. But that's what risk is, isn't it? It's the chance that overwhelming confidence in the consensus is wrong. In 2020, it was a positive surprise.
Okay, okay, I know. Most folks aren't worried about what can go right; instead, the real risk is about what can go wrong. Still, the premise is the same: where might consensus opinion be wrong? Here are five we're watching (in no particular order):
- Problems with the vaccine rollout
- Geopolitical and trade tensions do not fade
- Fiscal and/or monetary policy tightening
- A zombie economy
- Interest rate/dollar shock
Whether or not these particular risks come to pass, a new year almost always brings surprises of one form or another. Having a well-balanced, diversified portfolio and being prepared with a plan in the event of an unexpected outcome are keys to successful investing.
Top Five Global Investment Risks In 2021
by Jeffrey Kleintop
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