News & Views

Jeff Lewis continues his updated review of investment markets

12th January 2021

Jeff Lewis, director of Edinburgh based IFA Robmac, continues his review of the investment market as the world continues to deal with the COVID pandemic.

Jeff Lewis, director at RobMac


“Overall, the outlook for investment markets is generally positive but perhaps with a few bumps along the way as we roll out the vaccine. The expectation is that a degree of normality will return by the Spring of 2021.

In particular, I would highlight the following:

  • Equities are forging on, but are markets getting ahead of themselves? The feeling amongst Fund Managers is that corporate earnings will improve and that in turn will continue to drive markets higher.


  • There are positives for the US economy: the new Administration is expected to rollout further fiscal stimulus, and in aggregate, consumers have more than enough income to spend when restrictions are eased. US growth is expected to accelerate and unemployment to reduce so helping further market growth . They have an extensive vaccine programme in place which is set to be expanded once President Biden takes office.


  • There are plenty of analysts and investors who fear government debt and central bank financing will end in inflation, however a little bit of inflation may reduce the effect of the debt we will face. There has been more concern in the past regarding deflation.


  • Risk assets and equities in particular, should outperform this year but be prepared for a few ups and downs along the way which is not unexpected as always.


Our advice, as always, is to take the mid to long term view.  Knee jerk reactions to events that you have no control over is never a good investment strategy.”

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