Home etftrends.com Ten Themes for 2021

Ten Themes for 2021

By Jeremy Schwartz, CFA, Global Head of Research, WisdomTree

To kickstart our Behind the Markets podcast in 2021, we had the pleasure of chatting with John Davi of Astoria Portfolio Advisors about the 10 themes he’s incorporating into his model portfolios for 2021.

Notable themes we discussed include:

  • Commodity-Focused Equities
    • Davi likes natural resource-related stocks such as gold mines, copper mines, and international equivalents, given relatively low valuations and an uptick in inflation expectations coming out of the economic shutdown.
  • Cyclical Rotation Sectors Paired with Growth-Oriented Thematics
    • Davi likes sectors like Energy, Financials and Industrials for a cyclical acceleration in 2021. Small caps are also another way he is expressing this idea.
      • After past downturns like 2000, 2008 and 2015 with Greece, the cyclical sectors tended to perform better coming out of the trough.
      • Davi thinks banks in particular bring a margin of safety, given they trade at steeper discounts to the market, and with rates climbing higher, they should perform better.
    • Davi is pairing cyclicals with growth-oriented thematic funds like Clean Energy, Genomics and Biotech to bring idiosyncratic risk to his diversified portfolios.
  • China and Emerging Markets
    • While there is certainly headline political risk, Davi likes China as a long-term tactical allocation tied to the growing consumer class over next 10 years and the more technology-driven themes in China. Davi likes how China consumer names trade at a discount to the S&P 500 with superior long-term growth characteristics.
    • Regulatory risk: While China was in the news with the Trump Administration’s executive order last week, Davi sees the new administration being less motivated to raise conflict and thinks we’ll see lower pressure in trade wars.
  • Alternatives

This was a great conversation as to how Astoria is looking at 2021 and the 10 themes guiding their allocations. You can listen to the full discussion below.

Originally published by WisdomTree Investments, 1/12/21


U.S. investors only: Click here to obtain a WisdomTree ETF prospectus which contains investment objectives, risks, charges, expenses, and other information; read and consider carefully before investing.

There are risks involved with investing, including possible loss of principal. Foreign investing involves currency, political and economic risk. Funds focusing on a single country, sector and/or funds that emphasize investments in smaller companies may experience greater price volatility. Investments in emerging markets, currency, fixed income and alternative investments include additional risks. Please see prospectus for discussion of risks.

Past performance is not indicative of future results. This material contains the opinions of the author, which are subject to change, and should not to be considered or interpreted as a recommendation to participate in any particular trading strategy, or deemed to be an offer or sale of any investment product and it should not be relied on as such. There is no guarantee that any strategies discussed will work under all market conditions. This material represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. This material should not be relied upon as research or investment advice regarding any security in particular. The user of this information assumes the entire risk of any use made of the information provided herein. Neither WisdomTree nor its affiliates, nor Foreside Fund Services, LLC, or its affiliates provide tax or legal advice. Investors seeking tax or legal advice should consult their tax or legal advisor. Unless expressly stated otherwise the opinions, interpretations or findings expressed herein do not necessarily represent the views of WisdomTree or any of its affiliates.

The MSCI information may only be used for your internal use, may not be reproduced or re-disseminated in any form and may not be used as a basis for or component of any financial instruments or products or indexes. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each entity involved in compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties. With respect to this information, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including loss profits) or any other damages (www.msci.com)

Jonathan Steinberg, Jeremy Schwartz, Rick Harper, Christopher Gannatti, Bradley Krom, Tripp Zimmerman, Michael Barrer, Anita Rausch, Kevin Flanagan, Brendan Loftus, Joseph Tenaglia, Jeff Weniger, Matt Wagner, Alejandro Saltiel, Ryan Krystopowicz, Kara Marciscano, Jianing Wu and Brian Manby are registered representatives of Foreside Fund Services, LLC.

 WisdomTree Funds are distributed by Foreside Fund Services, LLC, in the U.S. only.

You cannot invest directly in an index.

newETFs.io respects the hard work of others and gives all credit to the remarkable folks at ETFTrends.com. This excerpt/article was pulled from their RSS feed; click here to view the original. Please note that on occasion, the RSS feed will not have the author. When this happens this site defaults the author to "News". Make no mistake, this excerpt/article was not created by newETFs.io, it was simply shared with you.