Impactful investing during and after the pandemic.
On September 17th, we discussed the recent performance of both local and international equity markets during and following the COVID-19 pandemic.
Based on these insights and historical performance trends, we explored the importance of portfolio diversification for investors to achieve their long term investment objectives.
Myles Zyblock, Chief Investment Strategist at 1832 Asset Management L.P., Scotiabank, shared key insights on the fallout from the pandemic, as well as a review of international markets and provided recommendations on investment strategies. Christopher Clarke, Head of Investment Management, Scotiabank T&T gave an overview of the domestic economy, its implications for local investment markets, and made recommendations for a TTD investment strategy.
About the speakers.
Outlook on Global Markets and Economies; Investment conclusions.
Climbing out of recession.
The global economy has likely passed its trough and the horizon is looking brighter.
Record stimulus packages have been introduced.
Unprecedented monetary and fiscal stimulus have been injected into the system to help reinforce the safety net under the economy.
Policy stimulus, a bottom in economic activity and a brighter outlook for earnings have helped lift equity prices. Bond yields will likely remain pinned down especially in the U.S. with the Federal Reserve recently announcing a fresh mandate on inflation.
There remains a wide disparity in potential economic outcomes from here. Aside from another major wave of infections leading to economic shutdowns, the upcoming U.S. election poses as a potential risk to derail the equity market rally. Broad-based portfolio diversification should help to remove some of the unnecessary guesswork from investing.
Outlook on Trinidad and Tobago Economy and Markets; Investment conclusions.
Stick With Strength
Local Large Cap equities (Banks, Conglomerates) have rebounded strongest from April lows and have relatively strong balance sheets to weather the economic lull brought about by COVID shutdowns.
Horses for Courses
Persistent low growth environment, now coupled with the pandemic impact have driven changes in consumer behaviour and Government policy that will benefit some companies more than others.
Evaluate New Opportunities
Significant equity price declines in traditional bellwether companies may present opportunities for medium to long term investors.
Pandemic risk to both the global and local economy remains. Investors should seek to diversify across names and asset classes to reduce downside risks as uncertainties persist over the short term.