Massive policy response and a crisis-fed acceleration of positive macro trends.
|00:03||This is Steve Auth. I’m the Chief Investment Officer of Equities at Federated Hermes.|
|00:08||What’s driving your outlook?|
|00:10||The policy response has been unprecedented, you know the Fed broke the glass three weeks ago, Congress did the same, they’re throwing tons of money at this thing, it’s a giant bridge loan to an economy that went full stop. We think that’s really gonna limit the economic damage here long-term, so it’s just a matter of then sorting through the winners and the losers, and there is gonna be a lot of dislocation here, we think a lot of the big drivers in this bull market have been accelerated by this crisis, the digital revolution accelerated, the healthcare revolution accelerated, the manufacturing renaissance in the US accelerated, and that acceleration ultimately is gonna lead to new highs in stocks, if you own the right ones, but also that’s gonna accelerate the creative destruction process, and there’s gonna be losers emerge here more quickly than the kinda slow death path they may have been on prior to the Corona crisis. So, I think it’s a reason why our portfolios generally have done better, because we focus everything on stock picking here at Federated Hermes, and that’s what we’re doing right now, we’re really trying to identify who are the winners in this post-Corona world, make sure our portfolios are stuffed full of these kinds of companies, and we think you know, we’re gonna continue to do pretty well, you know relative to the market itself in the months ahead, as a result of that kind of research driven process that we’re pretty good at.|
|01:48||Disclosure: Views are as of April 15, 2020 and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector. Past performance is no guarantee of future results. No method of investing can assure a profit or protect against loss in declining markets. Stocks are subject to risks and fluctuate in value. Federated Global Investment Management Corp. 20-30151 (4/20)|