In the first part of this research article, we attempted to provide some details to the question of “sector trends in 2021 and what may shift over the next 10 to 12+ months”. In that section of this article, we covered the broad market sector trends and highlighted how the COVID-19 virus event changed the way the global economy functioned for 8+ months. It also highlighted a number of trends that were already taking place in the global market – Technology, Healthcare, Discretionary, and Comm. Services. Quite literally, the past 20+ years have been a digital revolution for most of the world and that is not likely to change.
What will likely change is the demand for Commodities, Raw Materials, Agriculture, and Manufacturing/Distribution related to these core materials. We believe any resurgence of the global economy post-COVID-19 will consist of a resurgence in the demand for commodities and raw/basic materials as consumers extend their normal consumption growth at exceptional rates.
The question in our minds is how will this transition take place and over how much time? Will it happen suddenly as new global policy and restructuring take place? Will it happen more slowly as the global economy re-engages and rebuilds? Will it happen aggressively, disrupting other sector trends? Will it happen in a way that supports continued growth and appreciation of major sector trends? Continue reading "Will 2021 Prompt A Big Rotation In Sector Trends? - Part 2"