With the end of the COVID-19 pandemic hopefully in sight, the options market is signaling that the return to “normal” could prompt the reversal of long-standing market trends, while new digital habits are likely here to stay.

Key Takeaways

  • A normalization of the global economy in 2021 could lead to the reversal of some decade-long market trends: value stocks potentially outperforming growth, non-U.S. equities taking the lead over U.S. stocks and interest rates rising.
  • Still, uncertainty remains about the pandemic’s trajectory, and acute stress in small businesses could lead to higher joblessness, weighing on economic growth.
  • During the pandemic, investors moved a sizable amount of money into cash. One key indicator for the direction of markets in 2021 will be whether that cash gets redeployed into riskier assets.


What should be on the radar for investors in 2021?