Frank Häusler, chief strategist at Vontobel Wealth Management
Financial markets have seen their fair share of 'Black Mondays' but this year, investors witnessed a particularly dreadful one. Almost six months ago, on 9 March, fears surrounding the Covid-19 pandemic kicked off a sharp sell-off, culminating in the worst day since the Great Depression.
While stockmarkets have since recouped most of the losses made, many investors ask themselves what the next months will bring.
One thing is for sure: uncertainty surrounding the sustainability of the economic recovery, US-Chinese tensions and the upcoming US elections will keep investors on their tiptoes in the months ahead.
At the same time, however, both central banks and governments around the globe are willing to do their part by providing ample liquidity and launching extensive fiscal support packages.
This bodes well for equities, which continue to be attractively valued, especially when comparing them to other asset classes, such as the fixed income markets.
We therefore maintain our constructive outlook.