Heeding The Early Signs

I endeavor to make active investing less complicated. I rarely suggest stock picks but instead try to condense what’s happening in the economy so that our readers may have something to consider as they draw up an investment plan.

- Andrew Leong

The year 2021 appears to be a hopeful one. Reopening borders and businesses are on top of the agenda as businesses and countries are doing their best to roll out COVID-19 vaccines. Most of us hope that this is the year we triumph over the pandemic. So, what should retail investors consider?

The Year Ahead

With reported efficacy of vaccines against the new UK COVID-19 strain, a general upbeat mood that the end to the uncertainties that plagued 2020 is finally in sight. As the new COVID-19 vaccines are gradually delivered and administered worldwide, nations are gradually moving towards pre-COVID normalcy by relaxing border controls and allowing people to return to work. While the rollout of vaccines has been slow, we could be seeing more approvals over the next few months. The easing of border restrictions in several nations has also provided investors with some relief to worries concerning nationwide lockdowns and disruptions.

The economic outlook for the first quarter of 2021 is largely expected to improve as the world gradually returns to normalcy. However, the journey to pre-COVID levels of economic activity is still long and bumpy. With this macroeconomic landscape, let’s take a look at two currencies: the US dollar and the pound sterling.

The Dollar: A Bumpy Start