Invest in 'long term winners' and position for power catch-up, says UBS

How should investors take advantage of the current environment, even as the global economy slowly recovers from the battering of the Covid-19 pandemic? Amid a tumultuous year, 2020 has seen global economies shrink as financial markets plunged. It has also witnessed one of the most contentious US presidential elections in modern history — all happening amid a health crisis not seen since the 1918 Spanish flu outbreak.

In short, the world has seen an unprecedented “synchronised global recession” and the fastest bear market on record. What happened after that was a rebound that remains “bifurcated and divergent”, says Tan Min Lan, Head of UBS’s Asia Pacific Chief Investment Office.