Sometimes it’s better to travel than to arrive – Global Outlook & Strategy Q2 2021

Global growth is expected to rebound strongly as the vaccination rollout gathers pace. This is the widely held (consensus) view. Underpinning the narrative is the huge global fiscal stimulus led by the US, coupled with excess savings, compliments of government handouts across developed markets. Sometimes the journey can be more enjoyable than the ultimate destination.

KEY POINTS

  • Challenging investment environment, valuations stretched
  • Huge global fiscal stimulus leading to renewed global growth ex-vaccinations
  • To protect and preserve capital, remain diversified across assets
  • Prefer equities to bonds, we have a value bias in equities
  • There is a high level of speculation evident in markets
  • Debt is uncomfortably high in the event of rising interest rates
  • Inflation concerns dominate investment committee deliberations
  • Housing market booming at low

 

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Watch Grant Patterson, CIO and Michael Ogg, Director discussing the market and global outlook for the quarter in this video.

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