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Economic recovery in the shadow of the virus Update 15-07-2020

Economic recovery has begun

Economic figures show improvement, but a return to normal economic life is still far off.

Restart was initially faster than expected, but has been adjusted in the US in recent weeks.

Virus cannot be tamed so quickly

In the south of the US, the number of infections are increasing again.

In many emerging countries, too, the infection curve is not yet under control.

So now it's a question of waiting for a vaccine.

The investment strategy takes account of uncertainty

Stock markets are responding enthusiastically to the economic restart.

A V-shaped recovery seems unlikely to us as the Covid-19 crisis has also left structural victims such as the aviation industry.

We prefer sectors such as medical technology, e-commerce, media and software that support the new trends in life with Covid-19.

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.

Tom Mermuys, Senior Investment Strategist KBC Asset Management
Markets are reacting enthusiastically to the restart of the economy. However, there are quite a few risks so we're remaining slightly more cautious about shares and keeping some cash to fall back on.

Editing ended on 15 July 2020. This document is a publication of KBC Asset Management NV (KBC AM). The information in it can be changed without notice and offers no guarantee for the future. Nothing in this document may be reproduced without the prior, express, written consent of KBC AM. This information is governed by the laws of Belgium and is subject to the exclusive jurisdiction of its courts.