Investment Outlook 04.2020

The Covid-19 pandemic came as a surprise to all of us. The lockdown and social distancing measures put an abrupt stop to economic activity, which will lead to unprecedented falls in GDP figures. As a result, we have observed the fastest equity sell-off in history. Global equity markets dropped by more than 30% in only 22 days. The outlook for the economy and financial markets remains highly uncertain, although equity markets have rallied in recent weeks. The policy response is unparalleled, with fiscal and monetary support programs by far exceeding any past policy measures. We remain cautiously positioned due to the extremely high levels of uncertainty and the risk of renewed market disruptions. Nevertheless, we may use future market weakness to re-risk our portfolios.