Active management and risk awareness may help investors navigate a global economy where inflation becomes “too hot” and growth “too cold.”

A long-term approach can help investors position for opportunities in a volatile and rapidly advancing business cycle.

We expect growth and inflation to peak in 2021 in developed economies, and we are focused on liquidity and flexibility in our portfolios.

The global economy is poised for a strong rebound, but investors should beware of market volatility stemming from pronounced inflation fears.

Vaccinations and fiscal support should lift the global economy in 2021, but several risks call for careful portfolio positioning.