- A new year brings some old problems, but also a change in Washington.
- I expect higher taxes, higher government spending, but also gridlock from Congress. This makes selective buying the name of the game.
- A rise in corporate taxes has plenty of popular support. This could be a headwind for equity valuations, but a tailwind for municipal bonds.
- The "stay-at-home" play will continue to reign. Online shopping will accelerate, even if the economy opens back up. I like pure e-commerce plays of all sorts, including retail and e-gaming.
- For investors not interested in bonds or gold as hedges, covered call funds should be another good way to limit downside.
For further details see:
What To Expect In 2021, And Some Ways To Profit Off It