The theme for this special year end bumper issue is “positioning for the recovery”. While this may be true for economies and businesses trying to move on from the effects of the pandemic, it is certainly more so for investors trying to get a leg up in what is expected to be a convincing upcycle of the market. After all, as the adage goes, don’t let a crisis go to waste.

“Regional equity markets head into 2021 carrying the optimism of trade partnerships, better US-China trade ties and Covid-19 vaccines rollout in an ultra-low interest rates environment,” writes the DBS research team in their Dec 7 note. “The recent rally led by early cycle recovery leaders looks set to broaden to mid-cycle and small-mid caps next year.”

While the initial months of the pandemic were marked by a sharp divergence between the tech sectors and the other industries, this coming recovery is seen to be more evenly-spread. “Manufacturing will likely remain in the driving seat for many, but services recovery should gain speed, especially in economies that are able to roll out vaccines relatively quickly,” says Oxford Economics’ Priyanka Kishore. “Advanced Asia Pacific economies have an edge here, but the situation for the rest of the region isn’t dire. We expect India, Indonesia, and Malaysia to begin vaccinations from Q1,” she adds.

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