Tactical ETF 2Q21 Market Review & Outlook

July 8, 2021 — The post-pandemic recovery will continue to be the driving force for sentiment and returns in the back half of 2021. We expect an above-trend and broadening global growth picture to push risk assets higher, keep spreads stable, and apply upward pressure on rates in the coming months. From an economic perspective, we continue to expect global growth of 6% to 6.5% in 2021, with a Q3 peak of above-10% growth. The mix, however, has shifted; the U.S. and China recovery has matured, and Europe and emerging markets (ex-China) have picked up the slack as they begin to feel the benefits of increased vaccinations and economic reopening.