Asset Allocation Outlook February

12 February 2021

The strong upward trend in equity markets that began in late October 2020 faltered at the end of January. Stricter lockdowns in Europe, a muddled start to vaccination campaigns in most European countries and speculative behaviour from retail investors in the shares of a number of small companies in the US combined to create uncertainty. The US S&P500 equity index even noted its worst week since the end of October. Yet there are glimmers of hope and for this reason we’ve decided to maintain our positive view towards risk.

Please see Kempen’s Asset Allocation Outlook for February. The highlights this month are:

Better-than-expected economic growth in Q4 2020
Retail investors trigger turbulence in US equity market
Significant differences in corporate earnings between the US and Europe
Our investment policy is unchanged

2021, 12 February

Asset Allocation Outlook

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Disclaimer
Kempen Capital Management N.V. (KCM) is licensed as a manager of various investment funds and to provide investment services and is subject to supervision by the Netherlands Authority for the Financial Markets. This information may not be construed as an offer and provides insufficient basis for an investment decision.

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Asset Allocation Outlook February

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Asset Allocation Outlook

The Asset Allocation Desk

Joost van Leenders

Ivo Kuiper

Luc Aben

Kim Lubbers

Martijn Gerrits