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Global Multi-Asset Viewpoint
October 19, 2020

U.S. Industrials Poised to Outperform

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Global Multi-Asset Viewpoint

U.S. Industrials Poised to Outperform

U.S. Industrials Poised to Outperform

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October 19, 2020


Many long-running economic and market trends (such as low inflation and slow growth, or bull markets in bonds and tech) appear extended in terms of duration, overvaluation and heavy positioning. It is likely that a new market regime, whose winners will be different, is afoot. The industrials sector is likely to be one of the winners. After a period of nearly 10 years of underperformance, we believe industrials are undervalued and stand to benefit from a strong industrial recovery in the near term, normalization of the virus-disrupted travel sector, a shift in fiscal spending towards infrastructure, and increased investment spending associated with the continued moderation in offshoring manufacturing capacity. We are overweight the industrials sector in our client portfolios and review the case for this investment below.

Managing Director
Global Multi-Asset Team
Head of Global Multi-Asset Team
Global Multi-Asset Team

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