Release Date: January 11, 2021
FNBO Releases '2021 Outlook'
OMAHA, Neb. January 11, 2021—First National Bank of Omaha (FNBO) today released the FNBO 2021 Outlook. Prepared by FNBO’s Investment Management division, the Outlook provides a comprehensive evaluation of the U.S. and global economies and how they tailor portfolios to meet financial goals.
“We believe that an economic rebound is occurring but see the growth outlook distinctly as pre-vaccine and post-vaccine. In fact, the current escalation of COVID-19 cases and hospitalizations may suppress economic activity in early 2021,” said Kurt Spieler, Chief Investment Officer, Investment Management, FNBO. “As 2021 progresses, global vaccine adoption may lead to increased confidence by individuals and businesses.”
Among the outlook’s forecasted economic trends:
- The global economy should rebound due to increased confidence as COVID-19 restrictions fade.
- Small businesses reopening will likely be the key to a sustainable economic rebound.
- The consumer has the capacity to increase spending, which may occur if jobs are created and confidence increases.
- We expect interest rates to move modestly higher, resulting in a difficult return environment for bonds.
- The stock market will trend higher if profit growth occurs in all sectors.
- Equities are favored over fixed income due to expected economic growth and rising company profitability.
“Investors have a better chance for success if decisions are based on a systematic investment process. We implement our process by staying disciplined in a diversified portfolio, revisiting asset allocation, monitoring and rebalancing,” said Spieler. “In a post-COVID-19 world, it will be as important as ever to monitor allocations. Market adjustments are occurring more rapidly, shrinking the window in which to capitalize on opportunities.”
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First National Bank of Omaha is a subsidiary of First National of Nebraska. First National of Nebraska and its affiliates have more than $24 billion in assets and nearly 5,000 employee associates. Primary banking offices are located in Nebraska, Colorado, Illinois, Iowa, Kansas, South Dakota and Texas. Learn more at fnbo.com and connect with us on Facebook, Twitter and Instagram.
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