VT - 2020 Global Market Outlook - Q3 Update: The Great Reopening
Markets have rallied on hopes for an economic recovery as coronavirus-imposed lockdowns are eased across the globe. The rebound has been helped by oversold investor sentiment, but with sentiment back to neutral, so too is our strategists' market outlook.
Key market themes
The market rebound means that value is no longer compelling for global equities or credit. On the other hand, the cycle outlook has improved amid vast fiscal and monetary stimulus and economic reopenings. Sentiment, unsurprisingly, is no longer as supportive. Our composite contrarian indicator, as of mid-June, is providing a neutral signal.