InvestNow News – 26th June – Russell Investments – Global Market Outlook: Q3 Update – The Great Reopening
Well, that was historic. The fastest 30% drawdown in the history of global equities in the first quarter followed by the largest 50-day advance in market history in the second quarter. The rebound has been helped by oversold investor sentiment, but with sentiment back to neutral, so too is our strategists’ market outlook.
In our latest Global Market Outlook we examine how the ‘Great Reopening’ will occur as economies recover from the impact of COVID-19. Our investment strategists also highlight five likely longer-term impacts of the pandemic and main risks to a market bounce back.
Key highlights
- Equities: Preference for non-U.S. equities driven by expensive valuations and possible second wave of infections.
- Fixed income: Bonds universally expensive.
- China appears well-positioned for a strong rebound through the second half of 2020.
- New Zealand’s high household debt levels and downturn in tourism is creating a headwind to the nation’s recovery.