A 2021 vision: what every fund manager is buying (or selling)

LONDON (Reuters) – Dump the dollar! Buy emerging markets! Stay sustainable! These are among the consensus trades investment banks and asset managers reckon will dominate financial markets in 2021.

Vaccines will – hopefully – make 2021 the year of recovery from the COVID-19 pandemic, which has upended some sectors and reinforced the dominance of others.

Here are five trades the world’s biggest investment houses seem to agree on:

1/ THE MIGHTY (DOLLAR) FALLING

COVID-19 ended a decade of dollar strength, and expectations are for 2021 to bring more greenback pitfalls.

BofA’s December investor survey showed ‘shorting’ the dollar was the second most crowded trade. Another gauge – U.S. Commodity Futures Trading Commission data – shows $30 billion in net dollar shorts, swinging from last December’s $17 billion net long. Reuters News

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