Economic and Market Perspectives for H2 2020
In our latest video, Karsten Junius, Chief Economist, shares his outlook for the rest of the year.
- We are confident that the worst economic effects are behind us and that the recovery will continue in the coming quarters.
- Inflation will remain very low, so central banks are likely to keep policy rates and bond yields low as well.
- Investment grade bonds can be an attractive alternative to government bonds as their yield pick-up more than compensates for the higher default risk.
- Emerging market assets tend to benefit from a hunt for yield and we would only be cautious in low-rated markets.
- We expect temporary set-backs in equity markets but believe they will also trade at higher levels at year-end.