The 2021 investment trends
With the 2020 behind us, investors are shifting their attention to new investment opportunities and strategies. In this article, we will look at some investment trends for the year that just started. So, what are the 2021 investment trends that will impact the market?
The UK government agreed a trade deal with the European Union, avoiding a no-deal scenario. While the details about the agreement remain scarce, the trade deal is welcome. Question marks, however, remain for instance over the ability of the UK to sell services, including advertising, legal and financial services to European Union countries.
Although uncertainty for the UK economy is reduced, trade between the UK and EU will not be as easy as it was pre-Brexit; new non-trade barriers such as customs checks and extra import-export paperwork are required. This deal nevertheless reduces economic uncertainty by removing the risk of a disruptive no-deal scenario.
As a result of the Brexit deal, the pound should appreciate mainly against the euro now that the risk of a no-deal Brexit has finally been eliminated. UK stock market is cheap relative to global stocks: non-UK investors have largely avoided investments in UK...