2021 US sector outlook

After a most unpredictable year, find out what opportunities 2021 may hold in each sector.

2020 will be remembered by investors as the year a pandemic-induced recession led to spurts of extreme volatility. Among sectors, there was a wider-than-normal range between the gainers and decliners. As of mid-December, information technology stocks gained 36%, consumer discretionary added 28%, and communication services rallied 21%. Meanwhile, energy plunged 35% and financials lost 9%.

Looking ahead to 2021, there are reasons to be cautious and optimistic about both the broad market as well as within each individual sector. We recently asked our sector portfolio managers to share some of their highest-conviction investing ideas for 2021. Some themes, such as the global transition to renewable energy and the emergence of COVID-related trends, will likely span across the equity market, while others are more specific to certain sectors or industries.