Portfolio structure: From a defensive investment strategy to a catch-up strategy

In the United States and Europe, as long as the continued spread of the COVID virus results in periodic public health - and therefore economic - lockdowns, the right investment strategy will be a defensive one that overweights the sectors that are resilient to the crisis: Sectors exposed to China and East Asia, where the COVID pandemic is under control (luxury goods, high-end cars); Sectors that are not suffering (or not much) from the crisis and periodic lockdowns and partial lockdowns: healthcare, telecoms, tech, agri-food, media, utilities (local government services), public works and construction, industrial goods and services. Once an effective vaccine become s available, investors should then switch to a catch-up strategy that overweights the sectors that have been hit hard during the crisis: oil and gas, basic materials, cars and parts manufacturers, travel and leisure, retail and the financial sector .