Investors are starting to see the light at the end of the tunnel with the good news on a Covid-19 vaccine, according to Paul O’Connor, head of multi-asset allocation at Janus Henderson, a global financial organization.

“This year was not easy because of the big swings in the market. There were a lot of moving parts,” but trends are shifting, O’Connor said during Janus Henderson’s Global Media Week, which started today. “At the end of September, most investors were sensitive to liquidity and growth stocks were not doing as well. The markets are now trying to pivot from that position” and growth stocks are strengthening.

“The hope rests with a vaccine, and the availability of one has already been enough to be encouraging” to the market for the short term, he added.

For the longer term, government bonds are inefficient. Investors can rotate to assets like gold or currencies for a hedge against risk, and equities will switch to mid-risk rather than high risk, O’Connor said.

Alex Crooke, co-head of equities for Janus Henderson, said technology stocks will continue to do well. “This is the perfect Christmas for Amazon. The trend to strengthen technology will continue into the new year,” he said. “Many sectors should gain strength next year as consumer stocks do well and as investors are subject to FOMO (fear of missing out).” Investors will start to draw down some of the cash they are holding, he added.

The other sector that is changing is the supply chain for the consumer and industrial sectors, as the retail and manufacturing markets have realized a short supply chain might be more reliable than a global one, Crooke said.

With the low interest rate environment, bonds are finding the market challenging, but corporate fixed income is better than Treasurys, explained Greg Wilensky, head of U.S. fixed income at Janus Henderson. Corporate fixed income will be strengthened by strong support from global monetary policies, he said.

A limited level of inflation will return over the next two years, Wilensky added.

Finally, small-cap stocks may benefit from the Biden presidency, noted Ashwin Alankar, head of global asset allocation for Janus Henderson.