Internationally, leaning into financials, materials and industrials is a way to position portfolios for the global recovery and to hedge a potential overshoot in inflation, according to Gabriela Santos, Global Market Strategist at JP Morgan. See: S&P 500 Index climbs above 4,000, further upside ahead – UBS International earnings set to soar as nominal growth surges “The pandemic’s initial effects proved to be disinflationary, as demand for services and commodities plunged. This year, pent-up demand is set to be unleashed, fueled by the reopening of activity and fiscal stimulus. As the global economy operates above potential, inflation should move higher. While the debate will continue as to whether a structural shift has taken place, the cyclical uptick in inflation should lead to a surge in nominal economic growth.” “Corporate earnings growth should be strong, with consensus expecting 35% earnings per share growth for the MSCI All Country World ex-US index in 2021. This compares with expectations of 25% growth for the S&P 500. The greater cyclicality of international markets explains the difference: cyclical sectors make up 57% of international markets versus only 38% of the US. It is exactly sectors such as financials, materials and industrials whose earnings are the most geared to nominal economic growth.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next NZD/USD to extend its downward correction on a break below 0.6945 – Westpac FX Street 2 years Internationally, leaning into financials, materials and industrials is a way to position portfolios for the global recovery and to hedge a potential overshoot in inflation, according to Gabriela Santos, Global Market Strategist at JP Morgan. See: S&P 500 Index climbs above 4,000, further upside ahead - UBS International earnings set to soar as nominal growth surges "The pandemic's initial effects proved to be disinflationary, as demand for services and commodities plunged. This year, pent-up demand is set to be unleashed, fueled by the reopening of activity and fiscal stimulus. As the global economy operates above potential, inflation should move higher.… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.