“The first half of 2021 was all about recovery from the pandemic,” Mr Green said. “It was an impressive rebound with investor confidence soaring following a challenging previous year.”
Mr Green added: “The bullish sentiment gripping global stock markets will hold, but investors should prepare to rebalance their portfolios in order to grow their wealth in the second half of 2021.
“As we move through this transition period, and the economic cycle continues moving rapidly, investors should prepare to review, and where necessary, rebalance their portfolios in order to grow their wealth and avoid risks in the second half of the year.”
This is not to say that the outlook on general investments is going to spiral as it did at the beginning of the pandemic, simply that rapid change is imminent and taking that into account when revising one’s portfolio will be highly beneficial, Mr Green said.
“Global growth is expected to accelerate to 5.6 percent this year, with the global economy poised to stage its most robust post-recession recovery in 80 years in 2021, according to the World Bank.
“Against the backdrop, investors will be actively looking to top-up their portfolios,” said Mr Green.
“However, in this volatile and transitory phase, now more than ever, investors must be selective as there will be clear winners and losers.”
Gauging public reaction and support of individual industries throughout the pandemic may give one a good idea of how future trends might ensue and who these “winners and losers” might be.
“For instance, investors are likely to be interested in returning to those stock market sectors that benefit most from low bond yields, such as tech and other growth sectors, and ‘bond proxies’ such as utilities and insurance stocks.
“Meanwhile, the value sectors such as financials and industrials, seen as plays on economic recovery, are likely to have a little bit of their shine rubbed off,” he continued.
“In the second half of 2021, the overriding sentiment of global stock markets will remain bullish, but investors need to be aware that the landscape is quickly evolving from one half of the year to the other.
“In order to truly seize the opportunities over the two quarters, investors would be wise to review their portfolios with an independent financial adviser.
“As always, investors should be as diversified as possible in order to maximise returns relative to risk.
“This means geographical, sector and asset class diversification,” Mr Green concluded.