David Kelly, Ph.D./CFA, is the chief global strategist and head of the Global Market Insights Strategy Team for J.P. Morgan Asset Management. He also is a regular on CNBC, Bloomberg and other broadcast news outlets.
Investors need to recognize that you can be pessimistic on both the virus and the economy and still see opportunity in U.S. equities.
2020 will be the year of the virus, but 2021 will be the first year of the recovery and 2022 could well see earnings hit an all-time high.
With interest rates on cash and Treasuries down sharply, long-term investors should still think about being overweight equities relative to fixed income.