Investor Insight - Spring 2020

  • Quarterly investor insight
  • 10 minute read

Summary

  • Covid-19 will weigh heavily on global growth in 2020, especially on consumption spending, the services side of the economy, and employment.
  • Governments, central bankers and regulators have implemented unprecedented policies in order to support the economy at this time and to limit the impact on employment and income.
  • Significant increases in government spending will result in much higher government debt in years to come, though central bank asset purchases will help to keep the cost of government borrowing low.
  • The economic impact will depend on how the health crisis evolves, and how long social distancing measures are in place.

Illustrative positioning relative to long-term neutral allocation

For more on these themes and our current positioning download the PDF.

 

Important information
Any research in this document has been procured and may have been acted upon by Close Brothers Asset Management for its own purposes. The information is being made available to you only incidentally. The views expressed herein do not constitute investment, taxation or any other advice and are subject to change. They do not necessarily reflect the views of any company in the Close Brothers Group or any part thereof and no assurances are made as to their accuracy. Investments may not be suitable for everyone. Past performance is not a reliable indicator of future results. The value of investments and the income from them may fall as well as rise and is not guaranteed. An investor may not get back the original amount invested. Unless otherwise indicated, all information and opinions expressed in this document are those of Close Brothers Asset Management and are correct as of March 2020. CBAM5993.

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