Despite initial successes in overcoming the pandemic, uncertainty remains. Swiss Life Asset Managers expects stock markets to stay volatile and remains defensively positioned.
Since April, daily new coronavirus infections have been declining and there are initial plans to ease measures. Although this has led to a recovery of the equity market, Swiss Life Asset Managers considers this to be based on weak fundamental data. Sentiment among companies is worse than ever before and many have had to revise their statements about future earnings.
Other signs of economic uncertainty include the sharp decline in the Brent crude oil price and the intermittently negative prices for US crude oil. Swiss Life Asset Managers considers both to be the consequence of a severe global demand shortfall with simultaneously full warehouses. It expects the pandemic-related (second wave), medical (vaccinations) and economic uncertainty to persist and therefore remains defensive.