LOS ANGELES, CA / ACCESSWIRE / February 10, 2021 / 2020 was a wild ride for investors, among others, with markets see-sawing throughout the year. While many investors enjoyed great returns with markets surging to historical highs in 2020, no one is quite sure what will happen in 2021. Nils Larsen manager says investors need to keep their eyes peeled in the months ahead. With that in mind, he's going to share some specific things to watch out for.
"The pandemic is still at the top of everyone's mind, and for good reason," Nils Larsen manager argues. "It's going to have a huge impact on our economy, society, and individuals. Every investor needs to continue to monitor the COVID-19 pandemic, vaccination efforts, travel restrictions, and everything else."
Of course, many investors and others are already watching the pandemic closely. What specifically should investors look at? Nils Larsen manager has some insights to offer.
"We need to monitor how effective the vaccines are, and if new vaccine-resistant strains emerge. Any complications could result in more shutdowns, which would hamper the economy," Nils Larsen manager claims.
It's not just about the virus, however. Investors need to watch out for other developments as well, Nils Larsen manager says.
"Stimulus measures should be a major focus for investors for now," Nils Larsen manager suggests, "if governments launch huge stimulus plans, it could bolster markets. On the other hand, political fighting and a lack of stimulus measures could sink markets. Watch out for stimulus plans and dig into the details. Anything that bolsters spending or encourages the government to purchase assets could send markets to new highs."Nils Larsen Manager Believes Risks May Be High in 2021
Every investor should closely consider their appetite for risk. This is true in any given year, not just 2021. And people at different stages in their life may have different tolerances for risk. Nils Larsen manager says younger people can often afford to take on more risk, while those close to retirement may want to be more risk-averse.
"Risk is a major issue in any given year, but in 2021 I think risks will be quite high," Nils Larsen manager says. "Markets could change very quickly. We've seen markets reach historical highs in recent weeks. A few months down the road, we might be talking about historical losses, but no one really knows."
Some metrics suggest that markets are quite speculative at the moment. While Nils Larsen manager doesn't believe there's a reason to panic or flee markets, he is paying close attention to data.
"Right now, a lot of companies, especially in the tech industry, have extremely high P/E ratios," Nils Larsen manager points out. "Some suggest that high P/E ratios mean stocks are highly speculative. That could, in and of itself, increase risks."
So will 2021 bring more record highs? Or could losses pile up? For now, every investor should consider the possibility of both scenarios and everything in between.
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SOURCE: Nils Larsen