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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