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No asset was spared as investors realised the severity of the economic shutdown needed to contain the Covid-19 outbreak. The quickest US bear market in history, from February to March this year, was also the first broad-based market crash of the sustainable investing era and the one in which our research shows it came of age.

One of the most important channels that lower interest rates works through is via higher asset prices, leading to increased levels of household wealth. Theoretically, households should consume more as wealth rises. Changes in the ‘wealth effect’ are a key factor in assessing the outlook for the Australian economy, because a large share of the economy is household consumption.

Investors obligated to meet certain liabilities and investment objectives face a conundrum. While equities can provide the potential for capital appreciation that these investors need to help them meet their obligations, equities can also introduce volatility and downside risks. This combination is prompting investors to consider adding equities through an allocation to low-volatility (low-vol) equity investing—
a strategy whose benefits some investors may not fully appreciate.

Innovation has transformed the world over the past two centuries and the pace this change has only intensified in recent times, as shown by the increased pace of adoption. For example, it took
70 years for the washing machine to reach full penetration, 20 years for the colour TV, yet only 5 years for social media. Find out why China is at the forefront of the next wave of innovation and what this means for investors.

When clients transition from accumulation to decumulation, this usually means a reallocation of assets and a change to their overall portfolio construction. Addressing key risks a retiree faces while also meeting their income needs can be challenging, but there are effective investment strategies you can consider.

Reminding ourselves of the fundamentals of portfolio construction can help investors position portfolios appropriately in times of crisis and volatility.

We believe the Covid-19 crisis will trigger a step-change in policy, accelerate existing trends and transform investment frameworks. Government intervention, fiscal activism, corporate governance and sustainability will characterise this new order, creating opportunities out of dislocation.

It has taken 12 years from financial crisis to Covid-19 to see the pendulum swing back again to the economic and social order that will most likely dominate the next 30 years. But what will the new world look like, and who will the winners be?

Alva Devoy, Managing Director looks at the fundamental, economic and behavioural drivers of bull markets and the possible implications for global equity investors.