The coronavirus has forced a number of behaviour changes throughout societies across the globe, including how we work, shop and interact with others. Head of Equities at Franklin Templeton, Stephen Dover discusses how it has impacted investor decisions, too.
We are all globally on “COVID time” now as we have never seen as swift a change in our society, culture and economy as that caused by the coronavirus. Here are some points for investors to ponder.
In a world where bond yields are at or below zero and there is massive fiscal spending, equities should outperform dramatically in relative terms. The recent indiscriminate equity selloff has left pockets of relative value for investors.
Asian equities, especially Chinese equities, have outperformed many other markets this year, and the recent rise in the US dollar has also made foreign stocks relatively less expensive. Global technology companies and Chinese internet companies should see their competitive market position further strengthened by the current shutdown as the entire world learns to both work and live remotely.
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