As we emerge from the dark days of the Covid-19 health crisis, the global economy appears to be on the road to making a significant recovery.
Consumers are cash rich and keen to start spending; and thanks to the rollout of effective vaccines, they now can in most parts of the world.
What's more, this pent-up demand is underpinned by unprecedented levels of fiscal support over the past year. The International Monetary Fund (IMF), which recently more than doubled its 2021 US GDP growth estimate to 6.4%, are predicting a period of dramatic economic growth as a result.
Market expectations
Sectors that suffered during the pandemic, such as tourism and leisure, are also among those predicted to reap the rewards of a rebound in consumer spending.
"Our memories are marked by experiences, so I think travel and dining out will come roaring back," says Capital Group equity portfolio manager Hilda Applbaum.
However, this bounce back has largely been priced into the markets already. Rather than favouring certain sectors, investment success therefore looks likely to hinge on spotting corners of opportunity - and recognising the companies that are exiting the pandemic stronger than they went in.
Fiscal fallout
Yet behind the investment opportunities there are the fiscal consequences of Covid-19 to consider, with many governments' debt-to-GDP at the highest level since World War II.
Click here to read the full article and for more on the global macroeconomic environment and new investment opportunities in a post-Covid-19 world on the Future Forward hub.
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