Hit enter to search or ESC to close
McAlinden Research PartnersMcAlinden Research Partners
  • Research
    • Market Insights
    • Joe Mac’s Viewpoints
    • Research Sectors
    • Active Thematic Ideas
  • About Us
    • Our Process
    • What’s Included
    • Meet the Team
    • Get In Touch
    • Pricing
  • Sign in
  • Sign up
A Look Back at 2020: Reviewing Our List of Themes
⚑ Joe Mac's Viewpoints⦁ Theme TrackerⓁ 3D PrintingⓁ Battery MetalsⓁ BiotechnologyⓁ Copper & Copper MinersⓁ CybersecurityⓁ Gene EditingⓁ HomebuildersⓁ Lumber ProducersⓁ Online Retail & Ⓢ Brick and Mortar RetailⓁ Package CarriersⓁ Robotics & AutomationⓁ SemiconductorsⓁ SilverⓁ Silver MinersⓁ Social CommerceⓁ SolarⓁ Sports BettingⓁ US BanksⓁ Video GamesMarkets

A Look Back at 2020: Reviewing Our List of Themes

By McAlinden Research Partners December 31, 2020 January 8th, 2021 No Comments

The end of the year is finally upon us! This month’s Viewpoint offers a quick look at the state of the markets heading into 2021, followed by an overview of our active and recently suspended MRP themes. 

Expectations of a further advance in stock prices through 2021 are widespread. Recent surveys show Wall Street strategists projecting a 9% gain in the year ahead. Most are basing their case on the assumption of zero interest rates and a strong jump in corporate profits.

Per Bank of America’s Fund Manager Survey, a decade-high 70% of money managers, overseeing $534 billion, believe the global economy is in an early-cycle phase. In total, these managers are also underweight cash as the survey, conducted between December4th – December 10th, marks the first time cash levels have dropped below 4% since May 2013.

Though this indicates investors are the most bullish they’ve been on stocks and commodities since February 2011, BofA warns it may also be a signal of overexuberance in an overbought market.

The vigorous rebound from a lockdown-depressed first quarter should lead significant earnings growth in the second half of the year. It is hard to argue with that logic; and we agree with that portion of the consensus view. As of now, however, very few seem to be concerned that massive fiscal and monetary stimulation may lead to an acceleration in inflation which, in turn, could push up longer-term interest rates – even as the Fed keeps short-term rates flat.

Over in the fixed income market, expectations about future inflation have been creeping up and are now higher than pre-COVID levels. Just before Christmas the 10-year breakeven rate, derived from prices of US inflation-protected US Treasuries (TIPS), hit 1.97%, the highest point since April 2019.

Most of MRP’s Themes are driven by sector-specific forces. Nonetheless, in the extraordinary environment of the year 2020, they have exhibited plenty of beta while being boosted by the soaring overall market.

Despite this, few hurdles are evident in the short-term. Professional investors would be well-served to focus on themes. It is the identification of change-driven themes that is our mission at MRP. So, in the face of a rapid change and uncertainty in markets, a review is in order. Currently, we have a total of 18 active themes.

What follows below:

  • A tabular, year-end review of MRP’s current list of open themes, displaying returns of the underlying funds we utilize to track their performance
  • Detailed breakdowns of each individual theme
  • An overhead view of the themes we closed throughout the past year…

To read the rest of this Viewpoint, START A FREE TRIAL

You’ll also gain access to:

  • Our Daily Investment Insights
  • Joe Mac’s Market Viewpoints
  • All of MRP’s Active Thematic Investment Reports
  • MRP’s Entire Research Library

If you already have a subscription,  sign in

Tags:

2020EconomicsETFsMacroStocksViewpoint

Joe Mac’s Viewpoint

  • A Look Back at 2020: Reviewing Our List of Themes December 31, 2020
  • Easy Does It, For Now November 30, 2020
  • On Don, Joe & Jay October 29, 2020
  • Running Hot – Joe Mac’s Market Viewpoint September 30, 2020
  • Money Matters: Inflation, MMT, and Other Stimulus Spin-Offs – Joe Mac’s Market Viewpoint August 31, 2020

The Newest Market Insights

  • Drone Delivery Trials Accelerate Across the Globe January 21, 2021
  • Solar Surges into the New Year as Big Oil Begins Their Own Renewable Rollout January 20, 2021
  • Silver Set to Shine as Solar and EV Demand Could Spell Another Breakout Year for Metals January 19, 2021
  • Shipping Container Demand Soaring as Shortage Along Key Routes Persists January 14, 2021
  • Record Video Game Revenues Driven by eCommerce, Console Sales on the Rise in China January 13, 2021
All Market Insights +

Browse by Sector

  • Biotechnology & Healthcare
  • Commodities
  • Economics & Trade
  • Energy & Environment
  • Finance
  • Labor, Education & Demographics
  • Manufacturing & Logistics
  • Markets
  • Monetary Policy
  • Politics & Policy
  • Real Estate & Construction
  • Services
  • Technology
  • Transportation

Browse by Theme

  • Ⓛ 3D Printing
  • Ⓛ Battery Metals
  • Ⓛ Biotechnology
  • Ⓛ Cannabis
  • Ⓛ Copper & Copper Miners
  • Ⓛ Cybersecurity
  • Ⓛ Gene Editing
  • Ⓛ Homebuilders
  • Ⓛ Lumber Producers
  • Ⓛ Online Retail & Ⓢ Brick and Mortar Retail
  • Ⓛ Package Carriers
  • Ⓛ Robotics & Automation
  • Ⓛ Semiconductors
  • Ⓛ Silver
  • Ⓛ Silver Miners
  • Ⓛ Social Commerce
  • Ⓛ Solar
  • Ⓛ Sports Betting
  • Ⓛ US Banks
  • Ⓛ Video Games
  • Previous PosteCommerce Fortunes Bolstered by Rising Revenue Projections Across Several Years Ahead

  • Next PostFinancial Sector Bucking Up on Buybacks, Could See Steeper Yield Curve Ahead

Related Posts

★ Market Insights⦁ Theme TrackerCommoditiesEnergy & EnvironmentⓁ Solar

Solar Surges into the New Year as Big Oil Begins Their Own Renewable Rollout

McAlinden Research Partners
McAlinden Research PartnersJanuary 20, 2021
★ Market Insights⦁ Theme TrackerCommoditiesⓁ SilverⓁ Silver MinersManufacturing & LogisticsMonetary Policy

Silver Set to Shine as Solar and EV Demand Could Spell Another Breakout Year for Metals

McAlinden Research Partners
McAlinden Research PartnersJanuary 19, 2021
★ Market Insights⦁ Theme TrackerⓁ Online Retail & Ⓢ Brick and Mortar RetailⓁ Video GamesServicesTechnology

Record Video Game Revenues Driven by eCommerce, Console Sales on the Rise in China

McAlinden Research Partners
McAlinden Research PartnersJanuary 13, 2021

About Us

Our Process

What’s Included

Meet the Team

Get in Touch

Pricing

Factsheet

Terms & Privacy

Privacy Policy

Terms of Use

Cookie Policy

Disclaimer

Copyright © 2019 Catalpa Capital Advisors, LLC. All rights reserved.

  • Research
    • Market Insights
    • Joe Mac’s Viewpoints
    • Research Sectors
    • Active Thematic Ideas
  • About Us
    • Our Process
    • What’s Included
    • Meet the Team
    • Get In Touch
    • Pricing
  • Sign in
  • Sign up

Cookies

By using this site you consent to the use of cookies, you can read about how MRP handles cookies through the link provided. Cookie Policy