Our CIO Insights outlook update examines the longer-term economic implications of the coronavirus and revisits the six investment themes we identified at the beginning of 2020.
Inside the report “Through difficult waters", we explore:
- The economic outlook for 2020 and 2021 as the world turns the COVID-19 tide
- Asset class outlooks and 12-month point forecasts
- Why our existing six 2020 investment themes are still highly relevant
- Four key sets of tensions in the new post-pandemic global landscape
- SAA and our revised long-term asset class return forecasts
In summary, we argue that the initial recovery from the pandemic will be only partial, with global output not returning to pre-crisis levels before 2022. Nonetheless, a number of factors will help drive equity markets higher and we see investment opportunities elsewhere too.
In the longer-term, we see problems around the various dimensions of political control, around a possible addiction to policy intervention, around the impact of higher debt levels and government intervention on growth, and on the markets’ desire for handholding rather than “animal spirits”.
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