*Swedish expression for letting the cows out on the fields after a long winter inside.
My inspiration for this article is from Henrik Mitelman, Columnist Dagens Industri and independent economist/consultant/speaker at key events on macro/financial trends.
In 2021 we probably want to do all the things we couldn´t do 2020.
We underestimate the power when all countries in the world grow and the dynamic around everyone striving forward. There are two forces behind this movement.
- The financial politics are extremely expansive.
- The Central Banks have 0-interest and the buy securities (10 000 billion dollars).
Quotes like “We can´t afford inaction” & “Whatever it takes” (J.Biden) will effect a growth 2021.
Companies didn´t invest last year and households saved money – now it´s time to invest/consume. The market is hot and the stock exchange beats new records. When you see services like dog yoga and dog ice cream you know it´s good times!
Households in US plan to invest 1/3 of US Covid stimulus plan of $900 billion package on the stock market. The world economic are good at the moment and when everyone grow at the same time things will happen (“kosläpp”). Of course, you can worry about a stock market bubble. There is a new trend of buying stocks – a “bubbletrend”. TINA (there is no alternative) is alive, there are no alternative to saving money, only the stock exchange.
No free dinners
As a headhunter I work within business and leadership, I have a lot of interests in the market and different industries. There is one industry we believe are a very interesting and a growing industry. This is healthcare/healthtech/life science. The digitalization of the healthcare is massive and we spend more money on healthcare. In US it is 18% of GDP, in Sweden 10% and in China 5%. The whole world is moving towards US numbers and this industry will grow even more.
The financial politics are doing well here and now, but future generations will need to finance this. It´s almost like politicians found free dinners and everyone thinks alike, there are no one that is conservative and restrained. But as all knows, there are no free dinners.
Some global trends that most likely will take place.
- Healthcare industry, for example China will use more money on this sector.
- Global trade will increase.
- Globalization has paused.
- The pandemic has accelerated the megatrend
- Spring is coming.
- World economics has “wind in the sail” (Swedish expression).
- We underestimate the power when everyone is moving in the same direction.
- 2021 will be a good year, at least from a financial perspective – “kosläpp”.
Article written by Eva Backstam, Regional Manager & Senior Consultant Executive Search CFR Global Executive Search Sweden
Photo source: Reshot