Last week we wrote about trends that we think will continue into 2021 from 2020. Big technology shifts across AI, 5G, IOT, Blockchain and so forth are going to disrupt and accelerate change across many industries. Banking & Finance is one industry for example that is being challenged by the growing defi (decentralized finance) markets which now have north of $20 billion of assets in their ecosystem. We expect this trend to innovate and grow rapidly providing a growing number of options and products to serve the market.
With a new incoming administration, the stimulus packages will continue. Aside from the growing national debt and its staggering size, this continued onslaught of money flooding into the economy will continue to fuel inflation and devalue the US dollar. The latter alongside low interest rates will force asset managers and every day investors and retirees to seek yield that can offset the loss in value of holding cash.
1. The enormous injection of monies into the economy will cause most quality hard assets to rise in value
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