US Markets saw great performance in the first half of 2021 with multiple new highs made in May.
Second half of 2021 also shows good prospects for the market performance with the vaccination rollout speeding up, assisting US and global economies to reopen.
US fiscal stimulus planned will also likely drive the recovery of the US economy once the restrictions due to COVID-19 is lifted.
Interest rate environment which caused some volatility in the first half of 2021 should see a more stable performance in the second half of the year with inflation risks not looking to be significant until 2023 due to the speed of economic recovery with COVID-19 resurgence in various countries. Rate hikes are expected to be aligned to previous expectations to be kept low till late 2023 or early 2024.
With the macroeconomic environment recovery on track, corporate earnings growth is likely to continue to look optimistic and drive stock market performance. Investors would benefit from focusing on key sectors which have better growth stories in 2021 and beyond.