By Tina Fong, Strategist at Schroders

The world’s largest economy has officially entered recession, but risk assets have already rallied to the tune of a “V-shaped” economic bounce-back.

The reality is likely to be a more protracted recovery given the difficulties of lifting lockdown.

So how should investors manoeuvre their portfolios as the economic cycle moves from recession into recovery? This is where an understanding of the stages of the cycle can be an useful guide to asset allocation. While historical returns using the economic cycle is no guarantee of the future path, there is a reassuring rhythm to the performance.

Read the full report from Schroders here

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