Coronavirus

What Covid-19 means for investing in emerging markets equities

by Kunal Ghosh | 11/05/2020
What Covid-19 means for investing in emerging markets equities

Summary

In this podcast, Kunal Ghosh, Chief Investment Officer Systematic Equities, reviews how economies in Asia, Eastern Europe, Russia and Latin America have responded to the global Covid-19 pandemic and discusses the implications for investment portfolios.

Active is: Sharing insights

Sector ideas for the “re-opening” phase of the coronavirus crisis

by Mona Mahajan | 13/05/2020
Sector ideas for the “re-opening” phase of the coronavirus crisis

Summary

Around the world, lockdowns and quarantines are slowly lifting, but consumers and business activity remain fragile. We believe investors should play both offence and defence during this new “re-opening” phase. On offence, the tech sector will likely remain a leader, but select high-yield bonds and cyclical sectors (parts of energy and financials) could also outperform. On defence, consider consumer staples and healthcare, which are well-positioned for a post-coronavirus world.


Key takeaways

  • Historically, cyclical sectors tend to do well once an economy stabilises and growth resumes after a downturn
  • Markets have already started to reflect the long-term, secular growth opportunities that technology and healthcare could offer in a post-coronavirus world
  • Investors may find the most compelling risk-reward opportunities today in select high-yield fixed-income securities (“fallen angels”) and the lagging cyclical sectors (including parts of energy, financials, and even travel and leisure)
  • We believe that during times of crisis, financial markets lend themselves better to active strategies, and this pandemic is no exception
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