Market Outlook for July 2020 & Beyond
Posted on: July 20, 2020
The baseline economic forecast calls for a gradual but uneven healing of global economic activity. That being said, we continue to see substantial risks, and believe it’s prudent to proceed with caution. As such our focus has been on continuing to build a resilient portfolio that will be able to weather any proverbial storms that might occur over the next several months. The pace of the recovery will affect various regions, industries, and individual companies differently. Our active management is critical in order to add value, through individual stock selection and tactical asset allocation. Our research suggests that current valuations of risk assets (equity and credit) are approximately fair, and seek to maintain a moderate risk-on stance while balancing our conviction to be more cautious than usual. Our goal is to invest in companies that deliver robust earnings despite a tepid macroeconomic environment, emphasizing quality and growth in equity and a focus on resilience in the credit markets.
If you have any questions or would like to discuss further, please email us or call 403-296-9085.