Market Compass
JULY 2020

Edited by the Macro & Market Research Team.
A team of 13 analysts based in Paris, Cologne, Trieste, Milan and Prague runs qualitative and quantitative analysis on macroeconomic and financial issues.

The team translates macro and quant views into investment ideas that feed into the investment process.

Highlights

  • Hopes for a quick V-shaped recovery are fading fast.
  • The resurgence of COVID cases in the US and their steady increase in several Emerging Markets (EMs) underline the downside risks to growth.
  • Markets still discount a rosy scenario and this increases the risk ofa sharp correction. Central banks remain supportive, though.
  • Prudent overweight (OW) in Equities while reducing overweightin High Yield (HY) Credit. Keep a sizeable OW in Investment Grade(IG) credit.
Market Compass July 2020

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The team translates macro and quant views into investment ideas that feed into the investment process.