Citi analysts adjusted their asset allocation to reflect the greatest potential beneficiaries of the ongoing recovery, while also managing risks to some of the best performing markets so far.
Global Political Developments and Asia’s Prospects
By Jessica Tan
Political developments may occupy investor attention but COVID-19 and vaccines could remain the major factor that drives investment returns in 2021-2022.
Economy/Politics
US
Europe
Asia Pac / EM
Coronavirus COVID-19
East vs. West: A Contrast in COVID-19 Outcomes
By Celestee Tan
After a summer reprieve, the rise of a second wave of COVID-19 in US & Europe was widely anticipated. In comparison, COVID-19 infection rates have remained dramatically lower in much of Asia.
Asia’s Faster Rebound from COVID-19, but Scars Remain
By Jessica Tan
Despite major sources of economic scarring that could impact Asia’s return to pre COVID-19 trend growth, parts of Asia are buffered by the dynamic technology sector and a more robust management of the pandemic. Compared to the Asian Financial Crisis, Asia banks are now better capitalized and the region could return to pre COVID-19 output levels by Q4 2021.
Investors in Asia have flocked to COVID-19 defensive or growth sectors like technology this year, while COVID-19 cyclical or value sectors have lagged significantly. Citi analysts expect this relative performance to reverse, at least partially, as re-opening takes place.
Amid tensions between US and China, Hong Kong’s (HK) prospects have come under pressure. Citi analysts share their views on key financial and economic questions from investors.
