Columbia Threadneedle Investments

While political risk, a second Covid-19 wave, lower economic activity and suppressed inflation might trigger a short-term sell-off, in the medium term a high equity risk premium and low rates will support equities

Following previous macro shocks – the gulf wars, 9/11, SARs and cyclical major economic downturns – global air traffic has bounced back rapidly in a sharp V-shaped recovery, while toll road volumes followed more of an L-shape.

We now have a two-speed economy, and much talk about a disconnect between stock market and economy. But this won’t change our research and stock picking focus

When China’s leading telecoms operators launched their 5G data plans on 1 November, they were two months ahead of schedule in going live with one of the world’s biggest next-generation networks, demonstrating the pace of digital evolution in Asia’s largest economy.

Style rotations, where investors switch one type of investment style for another, are nothing new. At some point during most investment cycles different styles – such as growth, quality and value – will outperform at different points as investors rotate in and out depending on their outlook.