Thoughts and Hopes for 2021
Published / Last Updated on 18/12/2020
Vaccination is key but this has to be global and it will take a long time.
Governments will stimulate the economy not just for economic recovery but also to stimulate inflation.
Negative inflation i.e. deflation means the economy will stall as people will put off buying goods and services until they are cheaper. In addition, deflation means government debt gets even bigger. By pushing for inflation, government debt is devalued over a 5 or 10 year period without ever repaying it.
Expect interest rates to go negative. Expect stock markets to bounce up and down with an overall upwards trend.
Whether a Brexit Trade deal is agreed or not, we will still import and export goods and services to the EU. Brexit will close many doors but equally new doors will open. There will be winners and losers.
