Reviews & outlooks

Before using the defibrillator in a first-aid course, you learn to thump the patient’s chest to the rhythm of the Bee Gees hit “Stayin’ Alive”. Governments and central banks are applying some of the same Saturday Night Fever magic to the global economy.

The past month of June was marked by confidence on the markets. Nonetheless, models reduced equity overweighting as risk-bearing investments have now largely recovered. They are maintaining a negative duration positioning in light of record low interest rates.

Jin Zhang discusses the emerging markets rebound, opportunities in Asia and Latin America, health care, consumer staples, and technology, and shifting supply chains.

Ramiz Chelat discusses sectors and regions that may recover quicker and how to understand company valuations.

Donny Kranson considers the rebound in European markets, the effects of stimulus, Brexit negotiations and the potential for another market downturn.

Matthew Benkendorf discusses the backstop provided by monetary and fiscal stimulus and the importance of paying attention to valuations.

David Souccar talks about finding the right portfolio balance, and opportunities in luxury goods, entertainment, convenience stores and pharmaceuticals.

Brian Bandsma talks about the rebound in Asia Pacific markets and the mixed response to COVID-19, as well as supply chain dynamics, and opportunities for investors.

Market participants gradually regained their risk appetite in May. Global capital markets are attempting to juggle cautious optimism and fear of a “second wave” in the SARS-CoV-2 pandemic. As always, in-depth information on our models can be found in the latest edition of GMO.