Repositioning portfolios

27 November 2020

Following a US election result, Chief Investment Officer Bernard Swords discusses the implications of the outcome on markets as well as the changes Goodbody is making to model portfolios on the back of more certainty around the US political environment and the potential for agreement now on a fiscal stimulus.

  • Election result with no blue wave is a good outcome in our view. As per our client conference call last week, we believe a divided Congress will mean less extreme policy outcomes, which is a directly supportive factor for the market. In particular, significant corporate and income tax increases now appear to be unlikely.
  • Goodbody Investment Team will be investing what cash levels there are in models in equity, with the increased allocations biased to structural growth and regionally we favour adding to Asia in particular. Industrials reflect tentative re-opening optimism and are also favoured, in line with our cautiously optimistic growth view.  

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