Selectively lean against the wind

Columbia Threadneedle Investments ‘Asset Allocatie Update’ – september 2020

Most asset market returns can be distilled down to two basic elements: movements in cash flows and discount rates. In the past month or so, for risky assets such as equities, each has moved in a broadly friendly direction.

Cash flows

Expectations around earnings, which are the dominant source of cash flows for equity investors, bottomed for…