For decades I’ve warned investors about the folly of short-term market forecasting, but that doesn’t mean we can’t know anything about the year to come. In fact, we can already predict a few things about 2021 with a high degree of confidence.
In theory, investing is all about markets; in practice, it’s more about marketing. What will financial marketers sell in 2021? The same thing they always sell: whatever did the best last year.
So you aren’t going to hear much about REITs or energy MLPs anytime soon; real-estate investment trusts were off 8% in 2020, and master limited partnerships lost more than 30%.
Instead, you’ll hear a lot about what was hot.