Q2 Investment Strategy & Outlook 2020

01 Apr

Q2 Investment Strategy & Outlook 2020

Global Investment Climate - Key Points

  • Covid-19 suddenly puts a stop to market euphoria
  • Market panic triggers one of the fastest bear markets in history
  • Massive 10 trillion dollars in support from central banks and governments
  • A temporary shock that is likely to be followed by a sharp recovery in H2
  • Corrections of risky assets represent long-term opportunities

UAE Investment Climate - Key Points

  • The UAE swiftly implemented measures to prevent the spread of the Covid-19
  • UAE response to limit the economic impact of the Covid-19
  • Targeted Economic Support Scheme (TESS) stimulus package
  • Revised GDP growth rate

Key convictions for Q1 2020 - Key Points

  • An unprecedented health crisis but only a temporary economic shock
  • New budgetary paradigm in light of extraordinary fiscal packages
  • Lasting, unequivocally expansionary monetary policies
  • Unexpected consequences for capital markets
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