Q3 Investment Strategy & Outlook 2020

01 Jul

Q3 Investment Strategy & Outlook 2020

Global Investment Climate - Key Points

  • Pandemic no longer scares investors
  • Central banks’ massive liquidity injections are reassuring
  • A new paradigm is driving government indebtedness
  • Rapid rebound in financial markets and return of a certain euphoria
  • Disturbing dichotomy between financial markets and the real economy

UAE Investment Climate - Key Points

  • Revised GDP Projections
  • First PMI Reading in expansion territory since start of the year
  • Moody’s revise outlook to negative on eight UAE Banks
  • Cash buyers buying Dubai properties at lowest valuations in a decade

Key convictions for Q3 2020 - Key Points

  • The economic shock of Covid-19 will have lasting effects
  • A new paradigm prevails in terms of fiscal policy
  • Ultra-accommodative monetary policies until 2022
  • Forced monetisation of government debt and inflationary risks