• April 2021 saw an about-face in investor sentiment, with a generally optimistic tone seemingly replaced with investor angst about increasing Covid-19 case counts, vaccine complications, and vaccine distribution challenges. Lockdown measures and mitigation responses in Europe added to investor concerns.
  • US market concerns including the potential for rising interest rates and rising inflation. Tax hike worries, both on the corporate side and the individual front, also began to increase, all at a time when the improving economic backdrop, and reopening prospects in the United States, are beginning to accelerate, with herd immunity approaching sooner than most expected.
  • A closer look at market data suggests that bullish indicators remain in place. Additionally, plans for new infrastructure spending and tax increases may not have as significant an impact on growth conditions, as the effects of both would likely take some time to work their way through the real economy.
CFA® and Chartered Financial Analyst® are registered trademarks owned by the CFA Institute.

This material is provided for informational purposes only and should not be construed as investment advice.

The views and opinions expressed are as of April 2021 and may change based on market and other conditions. Unless otherwise noted, the opinions of the speakers provided are not necessarily those of Natixis Investment Managers or any of its affiliates.

There can be no assurance that developments will transpire as forecasted. Actual results may vary.

Performance data discussed represents past performance and is no guarantee of, and not necessarily indicative of, future results.

Provided by Natixis Distribution, L.P., 888 Boylston St., Boston, MA 02199. Natixis Investment Managers includes all of the investment management and distribution entities affiliated with Natixis Distribution, L.P. and Natixis Investment Managers S.A.


Related Articles

What Does Fed Surprise Really Mean for Investors?

The Fed’s June meeting dot plot shock, inflation views, and market reactions are assessed by Portfolio Strategists Jack Janasiewicz and Garrett Melson.

Navigating Dynamic Markets with Tactical Flexibility

How today’s ever-evolving credit cycles and complex global markets demand flexibility and why Loomis Sayles’ Core Plus Bond Team takes a tactical approach

Peak Growth, the End of US Exceptionalism, and More

Portfolio Manager Jack Janasiewicz discusses recent repositioning taken in light of the global coronavirus pandemic and presents some more thoughts on near-term market dynamics.

Midyear Outlook: Growth – but New Risks – Ahead

Global Market Strategist Esty Dwek discusses prospects for growth, inflation, and evolving risks in the second half.