2021 Midyear Outlook: Navigating through the recovery
Listen in as we discuss our outlook on the US recovery and the Federal Reserve’s new framework, including its impact on inflation, interest rates and growth.
Investors are flocking to equities more than at any time except the dot-com boom. What might that tell us?
The average investor allocation to equities is approximately 48% versus a historical median of 36%. If the past serves as precedent, annual returns over the next 10 years could be much lower than investors have enjoyed over the past decade, as investors draw-down equity exposure. Using actively managed strategies, focused on company-specific risks, may make sense in this type of environment.
Source: Philosophical Economics, Federal Reserve, Bloomberg, Ivy Investments. Dates shown are January 1, 1952 through December 31, 2020. This chart is being provided as a general source of information for education purposes only, and is not intended as a recommendation to purchase, sell or hold any specific security or to engage in any investment strategy. The S&P 500 Index is a float-adjusted market capitalization weighted index that measures the large-cap U.S. equity market. The index includes 500 of the top companies in leading industries of the U.S. economy. It is not possible to invest directly in an index.