Weekly Bulletin: A Shift to Sustainable Investing

It’s important to keep a long-term perspective amid market volatility – such as the extraordinary moves of recent weeks. One enduring trend we see is a move to sustainable investing: a structural shift in investor preferences leading to large and persistent flows into assets perceived as more resilient to sustainability-related risks such as climate change. Investors rebalancing portfolios after the risk asset selloff may consider leaning into sustainable assets.

Key points

  • Long-term trend: Investors should keep a long-term perspective amid market volatility, including a focus on portfolio resilience through sustainable investing.
  • Policy action: Historic US policy actions, including over $2 trillion in fiscal support and a raft of Federal Reserve measures, helped calm markets.
  • Data watch: This week’s data are likely to show further signs of economic damage caused by the coronavirus outbreak and containment measures.

The opinions expressed are as of March 2020 and are subject to change at any time due to changes in market or economic conditions. The above descriptions are meant to be illustrative only.