To keep investors informed about market shifts, the implications of policy changes and our long-term economic outlook, we have created a hub of timely and actionable insights.
July 27, 2020
European Union: A Recovery in the Making
The recently agreed €1.8 trillion EU spending package, if successfully implemented, should enhance the flow of investment toward the euro area, where more positive sentiment has already given the currency a boost. For longer-term investors, much will depend on the specifics of implementation as well as structural reforms, which include addressing flaws in the eurozone’s design.
Dividend payments have become more uncertain during the current pandemic-induced economic stress. Against this backdrop, companies are reassessing their ability to make payouts and certain regulators are urging the financial sector to suspend dividend payments. However, over time, earnings and dividend payments should return to pre-crisis levels and companies with strong market positions, managements and financial structures should likely generate the best future returns
This is Part II of a mini-series that looks at the US Presidential Elections. Part III will consider how investors can position their equity portfolio via sector choices in light of upcoming policy shifts.
This is Part I of a mini-series that looks at the US Presidential Elections. Part II will consider the policy trends of a second Trump administration or the alternative Biden administration and its relevance for markets.