Juni 3, 2020

Economic Hardship vs. Policy Deluge

Share on facebook
Share on twitter
Share on linkedin
Share on email

In Kürze

Defying the deepest global post-war recession, risk assets have continued to climb the wall of worries.
Economic Hardship vs. Policy Deluge
Share on facebook
Share on twitter
Share on linkedin
Share on email

Highlights:

  • Defying the deepest global post-war recession, risk assets have continued to climb the wall of worries.
  • Flattening new cases in the advanced economies and the continued policy deluge will help to keep sentiment underpinned.
  • The air is getting thin, though, with US equity markets back to autumn 2019 levels. Key risks are a second wave of infections and the fast deterioration in US/China relations.
  • We stick to a pro-risk tilt concentrated in the higher quality buckets of risk assets, even as cyclical assets are showing signs of life. Keep a small long duration bias given the ‘swoosh’ recovery, disinflation and continued central bank activism.

Download the full publication below

Market Perspectives 06/2020

Also interesting

EU flag green
July 26, 2021
Focal Point

ECB greening of the credit market to start in 2022

triple peak
July 23, 2021
Market Perspective

Market Perspectives ǀ Overfretting about the triple peak

European-Central-Bank-in-Frankfurt_web
July 22, 2021
Market Commentaries

ECB sends a dovish message as new strategy increases threshold for raising rates