Why Coolabah is painting a rosy picture for 2021

Ying Yi Ann Cheng, Portfolio Management Director at Coolabah Capital Investments, says the manager spent almost one billion dollars buying assets in March 2020 in anticipation of the fiscal and monetary policy stimulus packages that ultimately lead to a strong market recovery. At the time, many investors were rushing for the exits and forecasting six to 12 months of market pain to come.

And Coolabah’s Cheng is predicting big things for 2021 if the widely anticipated COVID vaccines deliver on their early promise.

“We think that economic growth will be very strong going into 2021 because we think vaccines will soon be widely distributed.”

Coolabah’s 25-person team was unusual in projecting back in March that effective COVID-19 vaccines would be developed, approved and distributed before the end of the year. The consensus opinion amongst experts questioned whether vaccines would ever be developed and thought that as a minimum they would take more than 18 months to come to market.

Cheng sees the record stimulus powering growth across numerous sectors as Australia and the rest of the world breathes a sigh of relief at the conclusion of 2020. Finally, she is very bullish on Aussie house prices: watch the video below to hear her growth forecast for the next few years.

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Coolabah Capital Investments (CCI) is a leading active fixed income manager, specialising in liquid, high grade credit. The large investment team covering Sydney, Melbourne and London is equipped with deep quantitative credit research capabilities. 

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