Outlook 2021: A Year of Healing

As 2020 comes to a close, we expect some key investment drivers to persist into next year. While our views speak to many different challenges confronting investors, including the poor bond yields on offer, the fate of US-China relations, and where to find growth, they are rooted in the belief that 2021 will be a year of healing for the global economy.

December 2020

China’s Onshore Bond Market: An Update

Interest in China’s onshore bond market has been rising steadily since the market was thrown open to foreign investors. Yet foreign holdings remain relatively low. We think the market warrants further attention from global investors, given Chinese bonds continue to offer higher yields and lower correlations than those found in other major bond markets, with the potential to bring portfolio diversification benefits.

November 2020

Markets Price in Gridlock as Prospects for a Divided US Government Materialize

As many had expected, the US presidential election turned into more of a process than an event. Whatever the outcome, history has shown that markets are fairly agnostic to which political party holds power in the United States.

November 2020

Planning for the US Presidential Election

Do investors stand to gain more from a Trump victory or a Biden win in November’s US general election? Presidents often have a mix of market-friendly and market-unfriendly policies. Mitigating factors, such as a divided government, can offset market concerns or enthusiasm relating to one specific candidate’s policies. Investors should not tweak portfolios based on election prognostication.

September 2020

Do Opportunities Remain for Investors After the Broad Market Recovery?

While investors should consider making tactical changes because of valuation differentials exacerbated by the COVID-19 pandemic, they should size them appropriately given elevated uncertainty.

September 2020

VantagePoint: Investment Opportunities Six Months Into the Pandemic

Economic, market, and healthcare circumstances have been extraordinary over the last six months. However, attractive opportunities exist in some pockets of tech, relatively cheap public equities, and even in credit less supported by central bank activity. Additionally, the importance of investing in social equity has been brought into sharp relief by this crisis.

September 2020

EU Crosses Rubicon With Recovery Fund Agreement

On July 21, EU leaders reached agreement on a €750B COVID-19 recovery fund, composed of grants and loans, and settled on a €1.074T budget for the next seven-year period.

July 2020

Will Virus-Linked Risks Overwhelm Small-Cap Equities?

No, we’re optimistic about this diverse collection of companies, and we think investors without dedicated allocations should establish toe-hold positions in developed markets (DM) small-cap equities funded from DM mid- to large-cap peers.

July 2020