- Hopes for a quick V-shaped recovery are fading fast.
- The resurgence of COVID cases in the US and their steady increase in several Emerging Markets (EMs) underline the downside risks to growth.
- Markets still discount a rosy scenario and this increases the risk ofa sharp correction. Central banks remain supportive, though.
- Prudent overweight (OW) in Equities while reducing overweightin High Yield (HY) Credit. Keep a sizeable OW in Investment Grade(IG) credit.