The Pros' Investment Strategies for the Rest of 2021

Stimulus. Economic revival. Inflation. Here are the investment strategies that Wall Street's top money minds are putting to work to navigate 2021's major themes.

Concept art of a strategy game
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Wall Street's most prevalent investment strategies looking out toward the rest of 2021 look much, much different than they did this time a year ago.

Around this time last year, the stock market was in the throes of its quickest bear market in history. The Dow Jones Industrial Average – which recorded its third-worst session in history, a 12.9% decline, on March 16, 2020 – plunged more than 37% in just six weeks before bottoming out. Investing playbooks were thrown out the window as everyone adjusted to the new COVID norm.

Everything has looked better since then, however. The Dow recovered its old highs by November, and it has spent the past few months routinely setting new highs as the economy heals from the coronavirus.

We're not there yet. The U.S. unemployment rate remains far above pre-pandemic levels, with predictions for a full recovery falling anywhere between 2022 and 2024. might not recover until 2024 or beyond. Weekly unemployment claims remain persistently high.

But Americans are being vaccinated, and at a rapid clip. Warmer months are coming. And a $1.9 trillion stimulus plan, including direct checks, is nigh. So optimism about the economy still exists – so much so that inflation concerns have even started to bubble to the surface.

How, then, should investors go about their business in this evolving environment?

We've asked several fund managers and other industry experts just that – and in turn, they've shared some of the investment strategies they like for the rest of 2021. Read on to see what they have to say.

Coryanne Hicks
Contributing Writer, Kiplinger.com

Coryanne Hicks is an investing and personal finance journalist specializing in women and millennial investors. Previously, she was a fully licensed financial professional at Fidelity Investments where she helped clients make more informed financial decisions every day. She has ghostwritten financial guidebooks for industry professionals and even a personal memoir. She is passionate about improving financial literacy and believes a little education can go a long way. You can connect with her on Twitter (opens in new tab), Instagram (opens in new tab) or her website, CoryanneHicks.com (opens in new tab).