July Investment Outlook

Pictet Asset Management: Liquidity vs the Virus

Date:

Luca Paolini Pictet AM

Author: Meritxell Sedo

  1. Vast amounts of stimulus have underpinned the markets after the initial shock of the COVID-19 crisis. The question for investors now is whether such support can continue to offset a sharp fall in corporate profits
  2. Central bank support must be balanced against the fact that valuations are now exceptionally high – some fixed income asset classes are the most expensive they’ve been in 20 years
  3. Additionally, the global economy appears to be on a path to recovery, which could cause bond yields to reverse course