Stock market bubble: 5 investing predictions for 2021 and beyond - Business Insider

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'It could be a Roaring 20s that will end badly': An equities chief who oversees over $7 billion shares his investing playbook and major predictions for 2021 and beyond

Bennett has successfully navigated the complex and tricky European market with his investment strategy that is a blend of both growth and value investing with a particular focus on valuation.

A compelling stock is one that meets five key components: good valuation, strong balance sheet, cash flow, a strong management , and catalysts, which enable the fund to be on the "right side of surprise." This prediction comes as government bonds in both the US and Europe have record low yields. As a result, many top investment firms are recommending investors be overweight equities and other risky assets to compensate for low yields in 2021.Bennett thinks growth stocks have gone into a bubble, including technology stocks. But that will shift in 2021 as investors return to value investing.

Bennett believes "bubbly behavior" is linked to the abundance of cheap credit, thanks to central banks slashing interest rates and pumping the financial system full of liquidity.

 

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