Key investment ideas for 4Q 2020

THE third quarter was again a stark reminder of how rapidly things can change this year. While most equity markets generated positive returns over the quarter, that is not to say 3Q 2020 was all smooth sailing.

September was shaky for global capital markets, but the third quarter ended with a resurgence of risk appetite across equities, commodities and corporate credits. Nonetheless, we expect a bumpy ride as we enter 4Q 2020 given the looming risks, most notably political ones such as the US general election and an uncertain Brexit transition.

Despite the risk events closing in on us, investors can take comfort that the veil of economic uncertainties caused by the pandemic has been partially lifted. Amid the uncertainty, we believe there are still pockets of opportunities within global equity markets ahead - more specifically in the US, Asia and Emerging Markets (EMs).