Weighing the pros and cons of offshore investing

Positive factors

Underlying reasons for investing in top global equity funds in the near future:

• More fiscal stimuli appear to be on the way• Europe’s exposure to financials and cyclically-sensitive sectors such as industrials, materials and energy, gives it potential to outperform when economic activity picks up and yield curves steepen.• The UK has been hard-hit by the Covid-19 crisis, and although the OECD has forecast an 11.5% decline in GDP this year, it expects it to rebound by 9% next year.• China seems well-positioned for a modest economic rebound this year, and a strong one next year, as stimulus kicks in and the global economy recovers.• The baton of growth is markedly passing on to emerging markets, which now drive much of the world economy. They constitute about 30% of the world’s output.• News of an effective vaccine, with the result in the immediate future, could drive markets significantly higher well in advance of doses becoming available.