Market Watch - top 3 themes
PRFA • February 21, 2021
The Top 3 themes that The Market will be watching are:
- Inflation - all things considered the RBA's outlook for inflation in 2021 seems reasonable, however, higher inflation may be a risk for 2022.
- Currency - expectation is that we will see the AUD rising across the first half of the year against the USD and then slipping back in the second half of the year.
- Speed and success of the COVID-19 vaccine rollout - delays, shortages, slow uptake and/or discovery of new variants could derail markets' confidence, but it is expected that vaccination rates (rather than infection rates) will be the new barometer of equity market sentiment in 2021.