Infographic: Over the long term, stocks haven’t been derailed by recessions or epidemics

2020/05/19

Summary

新型コロナウイルスのパンデミックや差し迫った世界的な不況が懸念されていますが、株式市場は不況や病気の流行による一時的な悪影響を乗り越えてきました。

It’s understandable to worry about the coronavirus pandemic and the impending global recession. Although the past is not an indication of the future, historically, the equity market has overcome each temporary setback caused by recessions and disease outbreaks, as shown in this chart of S&P 500 Index performance since 1945. Regardless of short-term market movements, investors should consider sticking to their long-term investment strategies.

Previous recessions and epidemics caused only temporary setbacks for US stocks
S&P 500 Index (1945-2020)

Infographic: Previous recessions and epidemics caused only temporary setbacks for US stocks

Source: FactSet. Data as at 31 March 2020. Past performance is no guarantee of future results. It is not possible to invest directly in an index.

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Active is: Seizing the China opportunity

Growth in China set to outlast the pandemic and trade wars

2020/06/17

Summary

Despite the impact of the coronavirus pandemic, and continuing tensions with the US, China remains on course to become the world’s largest economy by 2030. This could represent the coming decade’s most transformative development in global financial markets – and a major opportunity for investors.

Key takeaways

  • While it has been a challenging year so far, we expect China to resume its growth trajectory and become the world’s largest economy by 2030
  • The previously export-led Chinese economy is shifting its focus to higher-value, tech-driven sectors, with growth fuelled by the country’s burgeoning middle class
  • Improved accessibility, governance and transparency have increased the appeal of Chinese A-shares to foreign investors
  • Many indices underplay China’s growth story; a lack of exposure to China could mean benchmark investors miss out
  • Investing involves risk. The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. Investing in the water-related resource sector may be significantly affected by events relating to international political and economic developments, water conservation, the success of exploration projects, commodity prices and tax and other government regulations. Past performance is not indicative of future performance. This is a marketing communication. It is for informational purposes only. This document does not constitute investment advice or a recommendation to buy, sell or hold any security and shall not be deemed an offer to sell or a solicitation of an offer to buy any security.

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