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GLOBAL OUTLOOK UPDATE - MARKET VIEWS

Q3-2020 STRATEGIC ASSET ALLOCATION

Ride the Liquidity Wave with Caution, as Risks Are Tilted to the Downside

By Alessandro Magnoli Bocchi, Fawaz Sulaiman Al Mughrabi, Farah Aladsani

1 July 2020

In this paper we discuss:

  • MACRO CONTEXT: COVID-19 Has Triggered The Most Severe Peace-Time Recession In A Century;
  • RISK ANALYSIS: Rising Downside Risks Threaten Growth Recovery Prospects
  • POLICY OUTLOOK: Substantial Global Fiscal And Monetary Policy Response Is Still Necessary
  • MARKET OUTLOOK: CB Liquidity To Support Valuations, Volatility, Occasional ‘Market Crashes’
  • STRATEGIC ASSET ALLOCATION: ‘Weather The Storm’, Maintain A Long-Term Perspective

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