The economic calendar is a crucial tool for investors of all sizes and styles. It provides valuable insight into economic trends, government policy, and corporate activity, giving investors the information they need to make informed decisions about their investments. Institutional investors over the past 12 months have poured significantly more money into U.S. equity funds than retail investors have taken out, suggesting that they have been more willing to take on risk in the current market environment.
For 2021, experts suggest several ways to navigate the economic calendar. First, investors should focus on equities. This includes looking for stocks that have strong fundamentals and are trading at attractive valuations. Additionally, investors should consider investing in sectors that are expected to benefit from the economic recovery, such as consumer staples and technology. Finally, investors should consider diversifying their portfolios by allocating some of their capital to alternative investments, such as real estate and commodities.
The economic calendar is very light next week because of the holidays before things pick up again in the first week of January. However, there are still a few key reports to watch. These include the monthly jobs report, which is released on the first Friday of each month, as well as the consumer price index, which is released later in the month. Additionally, investors should pay attention to reports from the Federal Reserve and other government agencies, which can provide insight into the direction of the economy.