Brian Nick, Chief Investment Strategist, Nuveen met with Julie Cooling, Founder & CEO, RIA Channel to discuss Nuveen’s 2021 market outlook and how advisors can navigate potential risks and opportunities.
Nuveen’s 2021 market outlook, Dark Tunnel. Bright Light, centers around the path to economic recovery, a successful deployment of the vaccine and an expected boom following the end of a global pandemic.
However, Nick cautions that the next few months are critical to making it out of the “dark tunnel.” Across the U.S. and abroad, COVID cases are reaching all-time highs, prompting some state and local governments to re-enforce stricter lockdown policies, which could cause some long-term strain on the labor force and global supply chain.
Nick reiterates that by the “second half of 2021, the economy should be roaring.” The Nuveen outlook points to opportunity in emerging markets, financials, and a continued growth in tech stocks broadly. From a policy and legislative standpoint, the initial fears of a blue wave and sweeping tax increases, were subdued by a very divided senate.
Nick also speaks to the Fed’s very low likelihood of raising rates and tightening monetary policy in the next few years. Given the continued low-rate environment, Nick encourages advisors to look beyond traditional bond portfolios and consider generating income through an equity-yield approach or non-correlated alternatives such as real estate or land.
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