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Annual & Mid-year Outlook | Videos

Traveling to the post-COVID world: New portfolios for a new economy


COVID has changed the global economy, which requires shifts in portfolios.

  • The end of the global pandemic will be at hand in the coming quarters, with a strong multi-year recovery ahead
  • COVID has changed the world economy, largely via adaptations and efficiencies made to cope with pandemic restrictions
  • Macroeconomic management and the scale of government involvement may have also changed for the long run
  • The strongest “bounce back” investment returns have already been earned, with some of the lowest quality assets leading the way
  • Certain sectors and national markets still offer mean reversion potential, but the range and scope of opportunities is narrowing
  • We have started to position our asset allocation for “mid-cycle” conditions
  • We favor exposure both to assets that still have untapped recovery potential and to reasonably valued long-term growth assets
  • While we have started increasing portfolio quality, this in no way implies a negative outlook
  • Fixed income assets and cash remain unappealing, with a few exceptions