Multi-asset update – Navigating volatile markets amidst a global pandemic
In this live webinar hosted by Columbia Threadneedle, Alex Lyle, Head of Managed Funds and Felicity Long, Multi-Asset Client Portfolio Manager discuss how we have been thinking about, and responding to, this rapidly evolving situation and where they see opportunities for Balanced Portfolios.
The market response to COVID-19 has been astonishing, with sharp falls across risk assets, a jolt higher in volatility and a meaningful rise in cross asset correlations. Perhaps these moves are justified, as the cost of a ‘sudden stop’ to economic activity in the short term will undoubtedly be huge. Yet, the global policy response has also been vast, in both its scale and speed.
- The market response to the global pandemic has been astonishing. Volatility and cross-asset correlations have moved sharply higher. And perhaps justifiably so, as sectors of the economy simply shut down
- Equity outlook: broadly positive with some sectors benefitting from the current environment but there are risks
- Global bond outlook: reasonable background but little value from here. For global bonds, tactically overweight duration and a preference for quality in credit
- Global property outlook: Neutral – near-term economic headwinds but supportive structural trends. Defensive rental income that is best exposed to long term growth prospects
- Allocation to sub-portfolios: Overweight equity. Underweight fixed income. Neutral property