Q4 Investment Strategy & Outlook 2020

28 Oct

Q4 Investment Strategy & Outlook 2020

Global Investment Climate - Key Points

  • Investors and the general population were dangerously cavalier over the summer
  • Second wave of Covid-19 now on the horizon
  • Confidence remains inordinately high in financial markets
  • Exiting the economic crisis could be slower than expected
  • Political uncertainty in the US has not been factored in

UAE Investment Climate - Key Points

  • Lower than projected economic growth forecast for the UAE
  • The UAE economy on a fragile recovery path from the pandemic
  • Positive PMI reading but Employment figures continues to contract
  • UAE Property Prices have fallen the most compared to the rest of the world

Key convictions for Q4 2020 - Key Points

  • The second wave of Covid-19 could slow the economic recovery
  • The US elections will strengthen the new global fiscal paradigm
  • Policy rates will remain very low for a long time
  • Moving towards a complete monetisation of new government debt
  • The US presidential election could change everything in November