World economy slowly recovering Update 16-09-2020

Covid-19 is slightly loosening its grip

The sharp surge in infections in the US and Latin America seems to be passed its peak, while the second wave in Europe and Asia remains limited.

Meanwhile, the economy slowly continues to recover.

Government provides solid support to the economy

Support measures for households and businesses will be extended until at least the end of 2020.

· EU politicians reached an historic agreement on a huge European Recovery Fund.

Company earnings in the second quarter fell sharply, though less than forecast.

Investment strategy becoming slightly more adventurous

· With better-than-expected company earnings and the recovery of the economy reducing the likelihood of a further fall in share prices, we are again investing a little more in shares. Within the bond component, we are investing slightly more in corporate bonds and pursuing returns through government bonds with slightly longer maturities.

· We continue to believe in the medical technology, e-commerce, media and software sectors.

These activities do well on the market anyway and are now getting an extra boost because they make day-to-day life bearable during the Covid-19 crisis.

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.

Dirk Thiels, Senior Investment Strategist KBC Asset Management
Company earnings in the second quarter were not as bad as expected and the economy is slowly continuing its recovery. We are investing slightly more in shares and in corporate bonds.

Editing ended on September 2 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.