Global Investment View Q2 2020

Your look into the most important investor insights for the quarter

Introduction to the latest quarter

The Global Investment View for Q2 2020 distils the outcomes from the most recent meeting of Investec Wealth & Investment’s top strategic minds. Here, experts from the Investec Global Investment Strategy Group (GISG) offer their insights into the factors informing their risk positioning for the quarter, the medium term global outlook, how it will impact the South African economy, and what icebergs may lie ahead. 

Executive view of the quarter

The Global Investment Strategy Group (GISG) has increased its risk budget score to risk on (by 0.5 on a scale of -1 to +3), from neutral previously.
We believe now is the time to add risk to portfolios. After substantial falls in price, risk assets (equities and corporate bonds in particular) have become attractively priced relative to their long-term prospects, while asset classes like sovereign fixed income now fully reflect their “insurance value”.

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The financial system itself is resilient and that the monetary and fiscal policy measures taken by central banks and governments worldwide will substantially protect the fabric of the world economy while it is in voluntarily “shut down” (on a rolling basis) to control the viral load on healthcare systems.

Chris Holdsworth

The committee has increased its recommended allocation to SA government bonds. SA government debt currently trades at a significant premium to inflation as well as a significant premium to similarly rated peers.

Chris Holdsworth, Chief Investment Strategist. Investec Wealth & Investment

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Read the full report for Q2

Find out why the Global Investment Strategy Group has increased its risk budget score to risk on from neutral previously.

More insights from the GISG

Read more articles and thought leadership from the investment experts of the GISG. 

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