Many countries' national income in the second quarter will be more than 20% lower than last year. The decline in corporate earnings will be even greater.
Easing lockdown measures will lead to a sharp recovery, but we won't return to the pre-Covid situation anytime soon. Figures from China and South Korea show that, without vaccines and medicines, consumers remain wary. In many sectors such as aviation, tourism and hospitality, the impact is permanent and costing jobs.
Markets are reacting enthusiastically to the restart of the economy. Nevertheless, we are remaining cautious and investing slightly less in shares.
We prefer sectors such as medical technology, e-commerce, media and software that support life with Covid-19. We have a preference for the US as the companies in those sectors are mainly active there.
Secure government bonds and cash complete the portfolio.
Besides this long-term vision, protection and trends on the financial markets are important aspects too. Your personal investment, which you can see in KBC Mobile and Touch, may have a different composition that takes account of your comfort zone.