The coronavirus has changed everything. We’ve seen a bear market in equities - and then a bull market - with swings of over 20% in both directions. We have witnessed wild currency moves, a plunging oil price and liquidity disappear from fixed income and credit markets.

How should we think about asset allocation in such a fast-moving market environment? We ask Co-Head of Multi-Asset Solutions, Kej Somaia, how objective-based investors can grapple with dispersion of returns between asset classes.

Kej will discuss:

  • Overall asset allocation and the breakdown of traditional relationships between defensive and growth assets.
  • What we can draw from the past; while history will not provide a playbook, there are lessons to be learnt about turbulence.
  • The outlook for inflation for objective-based investors, given markets are tipping recession, while central banks and governments around the world deliver unprecedented stimulus.
  • Whether tightening liquidity means investors should change the way they manage portfolios.
  • The dislocation opportunities for asset allocators - the commodity we avoid in calmer times, what it would take for us to increase our allocation to equities and why we won’t be sitting the crisis out in cash.

 

Watch the video below:

 

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