Release Date: August 12, 2021
FNBO Releases Mid-Year Investment Update, Providing Economic Outlook for Second Half of 2021
—Equities, Interest Rates, Inflation, Housing Prices and COVID-19 Variants Among Topics Addressed in Report—
OMAHA, Neb. August 12, 2021—First National Bank of Omaha (FNBO) has released the FNBO 2021 Mid-Year Investment Update. Prepared by FNBO’s Investment Management division, the report provides an evaluation and outlook of the economy, liquidity, corporate earnings and stock market for the second half of 2021.
“In the second half of this year, we expect a similar macro-environment to the first half and tactically favor equities over fixed income. Within equities, we continue to favor U.S. equities over international equities based on the strength of the U.S. economy and excess liquidity. Our expectation is economic growth may moderate somewhat later this year from the 6% level but remain in the 3–4% range,” said Kurt Spieler, Chief Investment Officer, Investment Management, FNBO.
The report is divided into four sections of economic analysis:
Potential risks to continued U.S. expansion are high unemployment, greater than expected inflation and interest rates, and the possibility that vaccines could prove ineffective against COVID-19 variants. In addition, the report notes that the economic recovery has been uneven across industries, income and demographic groups.
“Market adjustments in all asset classes are occurring more rapidly, shrinking the window to capitalize on investment opportunities. As a result, investing for the long-term in a diversified portfolio is even more critical for investment success. Finding the right asset mix for your portfolio is a personal decision based on goals and risk tolerance,” added Spieler.
The full report—which provides additional insights, data, analysis and disclosures—is available here.
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