I'm Steve Auth, Chief Investment Officer, Federated Hermes.
What is Federated Hermes, 2021 outlook for equities?
We're very optimistic on 2021 we've got a... We actually just recently increased our price target for the end of the year to 4,500 on the S&P. You know we think the market conditions look unusually positive for next year. I'd say three kind of major drivers of that. The first is just the COVID vaccine and sort of the end of the COVID crisis which we expect, at least by mid-year should come, you know, fully round trip. And, you know, this is a very unusual year where the year over year, impact on a lot of industries is going to be extremely positive. Particularly on the more cyclical sides of the economy which is where, we're recommending investors to be overweight in 2021. So, you know, we got that going for us. You've got a coordinated central bank easing around the world, along with additional fiscal policy coming in just recently on the US side and really globally. And, you know, you think about it with this COVID crisis ending simultaneously around the world because of the vaccine, you end up with one of the most synchronized global recoveries, in the history of markets. And that's going to have a very powerful synergistic effect we think, in 2021. So we're very optimistic actually on the markets next year.
Disclosure: Views are as of 12-22-20 and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector. S&P 500 Index: An unmanaged capitalization-weighted index of 500 stocks designated to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. Indexes are unmanaged and investments cannot be made in an index. Federated Global Investment Management Corp. 21-40006 (1/21)