The hunt for quality and resilience


The enormous economic shock resulting from the pandemic will exacerbate or accelerate the existing problems and imbalances facing many companies and countries. For investors, an even more granular approach will be required when choosing between winners and losers.

In this environment, ‘quality’ and ‘resilience’ are likely to become even more important investment themes, especially against the backdrop of an imminent profits recession and the certainty of rising defaults.

Quality as an investment attribute can be can sometimes be a nebulous concept – is it return on equity, balance sheet strength, market position, growth, or a mix of all these and others? What is clear is that companies that possess some or all of these traits have a chance of surviving and thriving.

View Full Article – published by Aberdeen Standard Investments on 19th May 2020