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https://www.troweprice.com/financial-intermediary/be/en/thinking/articles/2020/q4/global-market-outlook-managing-other-side.htmlThe financials and energy sectors could offer particularly attractive shorter‑term value opportunities in 2021, according to Giroux:
Financials: Steepening yield curves have improved net lending margins, and the reserves set aside to cover expected pandemic loan losses appear to be larger than needed, Giroux says. European banks appear especially cheap based on price/book value multiples, Thomson adds.
Energy: A broad collapse in capital spending should reduce excess oil and gas supplies, potentially supporting prices, Giroux predicts. An easing of the pandemic could boost travel in 2021, reviving demand. However, the longer‑term outlook for traditional fossil fuel producers remains challenged by renewables and regulatory pressures.