The report comes just one day before the inauguration of US president-elect Joe Biden. Despite heightened security measures for the inauguration itself following the 6 January storming of the US Capitol, many in Luxembourg have already voiced their opinions on the fact that the new leadership will have a positive impact on diplomacy, perhaps even easing some of the current geopolitical tensions.  

Overall, UBS is predicting the year ahead to be one of renewal. “Renewed growth, expansive fiscal and monetary policies, and fresh political leadership mean we should also expect new market leadership in 2021," according to Heinrich Baer, UBS Luxembourg country head.  

Although UBS advises Luxembourg investors to “diversify across G10 currencies or into select emerging market currencies and gold”, it also advises those looking for the “next big thing” to seek out opportunities in emerging or growing areas, such as 5G, healthtech, fintech and greentech--some trends of which have accelerated due to the covid-19 pandemic in a world becoming what UBS calls “more digital and, in some respects, more sustainable.”

UBS seems to be optimistic about growth in 2021, stating that it “expects economic output and corporate earnings to rebound to pre-pandemic levels in 2021.” Their best-case scenario projects that stimulus programmes, the vaccine rollout and low interest rates will prove advantageous for SMEs, among others. 

"Looking beyond the year ahead, investors should also consider sectors undergoing technological transformation,” states UBS Global Wealth Management CIO, Mark Haefele. “If the last decade was about investing in technology itself, we think the next will be about investing in the disruptors challenging the status quo in other industries.”