Vescore Global Market Outlook August 2020

The capital markets seemed to have overcome the initial shock of the pandemic and its repercussions in April. Nonetheless, uncertainty is still high in all market segments – and is likely to remain so for the time being.

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.

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.