With the U.S. election less than a month away, we have truly entered the crazy season of U.S. politics. COVID-19 in the White House, the President on cocktails of experimental drugs, stimulus package on again, off again, no on again, all against a backdrop of growing second waves of the virus across much of the world. Millions of jobs lost, millions working from home, schools opening and closing, lineups for COVID-19 tests and markets flirting with all-time highs. Welcome to the crazy train.
Drummond Brodeur's blog
We are in the most uncertain of times. The global pandemic is still accelerating, and unprecedented policy stimulus, funded by unimaginable debt burdens, has been unleashed. Tens of millions have lost their jobs with many only just learning how permanent the losses will be as business shutdowns begin to ramp in coming quarters.
By Drummond Brodeur, Senior Vice-President and Global Strategist – We enter the second quarter in a virtual lockdown as the world reels from the impact of the global COVID-19 pandemic. Having exploded across China in February, the virus spread quickly through the developed world in March and, we fear, may continue to make explosive inroads into many emerging economies in the coming month(s).
There is little doubt that both 2020 and the 2020s will prove to be interesting times. Almost everything we have known from a global economic, market, political and social perspective seem to be in a state of flux vs. the broad norms that have existed for the better part of all of our lives!
For investors, the biggest shift over the past quarter was the definitive return by global central banks to easing mode as the U.S. Federal Reserve (Fed) cut its target interest rate for the first time in over a decade, while the European Central Bank (ECB) cut rates to -0.5% and restarted its quantitative easing (QE) program. For now, the highs in interest rates are behind us and we expect them to keep heading lower through 2020. For savers and risk-averse investors this is a massive headache.
I expect to see a significant global economic slowdown in the next 12 months, with a high chance of a recession around this time next year.
Following one of the worst year-end routs for risk assets in a long while in the fourth quarter of 2018, markets rebounded tremendously to start 2019, returning most equity markets to levels roughly in line with where they were last September.
Join Drummond Brodeur, Senior Vice-President and Global Strategist, as he shares his views on recent developed markets headwinds and tailwinds with a focus on the USA, Europe, and Canada.
Join Drummond Brodeur, Senior Vice-President and Global Strategist, as he provides an update and outlook for the Signature Global Income and Growth Fund.
As summer wraps up and students head back to school, the Signature team is pleased to offer their own educational series. Back to School is a collection of videos that provide current views on the markets, from credit and rates to FX, commodities and equities. Watch these videos to gain valuable global insights from Signature’s sector specialists and portfolio managers.