Webinar wrap-up: Winds of Change

Written By Jason Harwood

On Thursday 15 October we held our first ever Economic and Market update online via a webinar. While the Coronavirus pandemic stopped us from hosting the event in-person, it allowed for greater reach, ensuring our clients right across the country were able to attend.

We were joined by guest presenters and industry experts, David Bassanese and Nick Griffin.

David Bassanese is the Chief Economist at BetaShares Exchange Traded Funds and Nick Griffin is the Founding Partner and Chief Investment Officer at Munro Partners. Learn more about each of them here.

Head of Investment Committee at Lifewealth Group, James Vandeloo has highlighted key take outs from each of our presenters below.

David Bassanese
Economics – Macro

  • While Covid-19 cases are picking back up in Europe and the US, the 2nd wave of deaths is not as bad as first feared

  • A vaccine is still likely some time off

  • Global monetary policy and fiscal stimulus remains accommodative to financial markets

  • Global PMI’s are recovering suggesting significant improvement in economic activity

  • The worst economic news is likely already behind us

  • Debate now is on the speed of the economic recovery

  • In Australia the effective unemployment rate is now declining

  • We have experienced a V-shaped equity market recovery as investors have trusted central banks and “looked through” the near-term earnings weakness

  • A Technology/growth bias in stocks favour global over local shares

  • Polling suggests Biden still the favourite to win the US Election, but it’s a closer call in betting markets

Nick Griffin
International Portfolio Manager – Munro Partners

  • Avoiding sectors most affected – tourism/ hospitality, financials, old media, energy

  • A post Covid-19 world equals digital acceleration and lower interest rates which favours growth assets

  • Nick believes long term growth areas of interest are e-commerce/digital payments, software, innovative healthcare, semi-conductors and climate change continuing to prosper in a post Covid-19 world

  • The Growth vs. Value dynamic is deeply misunderstood and arguably all investors will need to evolve to a framework whereby disruption accelerates

  • The key to successful investing will be to find structural growth winners

If you have any further questions or feedback, or think your portfolio needs some adjustments, please get in contact with your adviser.

Jason Harwood
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