Invesco Canada blog

Insights, commentary and investing expertise

Portfolio managers examine the impact of COVID-19


Global Market Strategist, Invesco Ltd.
May 14, 2020

Subject | Active management | Coronavirus impact | Institutional | Invesco Fixed Income (IFI)

As the number of COVID-19 cases continues to rise, so do unemployment rates. And so the world continues to look for balance between implementing public health measures, offering fiscal and monetary stimulus, and opening up economies.

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Tactical Asset Allocation Views – May 2020


Senior Portfolio Manager, Invesco Investment Solutions
May 13, 2020

Subject | Active management | Coronavirus impact | Institutional

Our macro regime framework continues to signal that the global economy and all its major regions and countries are in a contraction regime. As widely expected, the economic data are beginning to reflect the disruption caused by quarantines and lockdowns, resulting in a significant deterioration in our leading economic indicators, which we expect to continue for some time. While global market sentiment has stabilized over the past month, it remains in a downward trend, suggesting markets are still expecting downward revisions to global growth expectations. As previously discussed, we believe this macro environment warrants a defensive portfolio posture. We have not made major changes to our asset allocation and continue to favour an overweight exposure in investment grade credit and defensive equity factors.

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Seeking value in emerging markets: China

Our team joined a webinar with over 800 participants, a significant turnout that was not unexpected given the current market environment.
 
As a follow-up to the call, we’ve received numerous questions from participants, with the vast majority pertaining to China. There was also some interest in India, Mexico and Brazil, which we will address in an upcoming blog post.
 
Growing investor interest in emerging markets has been driven by China successfully flattening the COVID-19 transmission curve and being one of the first countries to see signs of a recovery.
 
Conversely, many other countries are still struggling to control the virus, with their economies continuing to deteriorate. These developments make emerging markets potentially more intriguing to investors.

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Low-wage job losses fuel the U.S. stimulus debate


Global Market Strategist, Invesco Ltd.
May 11, 2020

Subject | Coronavirus impact | Institutional | Macro views

As expected, the U.S. Employment Situation Report for April was abysmal. Unemployment rose dramatically as pandemic lockdown measures were implemented across the U.S., with hospitality and leisure posting the biggest job losses. Amidst all the terrible data, there was one obvious and glaring takeaway: Job losses were concentrated among low-wage workers. In fact, so many lower-paying jobs were lost that wage growth rose markedly, underscoring how hard hit lower-income workers have been by this pandemic.

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Environmental, social and governance (ESG) investing in the era of coronavirus


Vice President, ETF Strategist, Invesco Canada
May 8, 2020

Subject | ETFs | Institutional

The unprecedented global response to the coronavirus pandemic has caused a sudden and severe economic slowdown. But not all companies – even within a sector – should be affected to the same degree. And part of that differentiation may be attributable to corporate policies that are recognized in environmental, social and governance (ESG) traits.

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