June 04, 2020

Portfolio positioning for a recovery scenario

Talley Léger. Investment Strategist

In response to numerous client questions about portfolio positioning for a recovery scenario, we provide a historical perspective on stock market, sector, size, style and regional allocations. Also, we juxtapose typical recovery performance trends against recent price action.

At present, we observe that some performance trends—for now, at least—do hint at a potential recovery, including the recent outperformance of stocks relative to bonds, cyclical sectors relative to defensive ones and small market capitalization stocks relative to their large counterparts.

However, some other trends suggest it may be too soon to expect a durable change in leadership, namely in the form of growth continuing to outperform value and developed markets still outperforming their emerging competitors.

Whether the recovery began a month ago or it begins a month or more from now, we help investors look across the valley to better times ahead and position their portfolios for optimistic, long-term outcomes.

To learn more, check out the charts.

Related insights: Quantifying the earnings impact of COVID-19

Investment risks

  • The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Important information

  • Data as at 27.05.2020, unless otherwise stated. This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities.

    Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals, they are subject to change without notice and are not to be construed as investment advice.

Important information

This website has been prepared for information and illustration purposes only. This website is not an offering of a financial product and is not intended for and should not be used by retail clients. It is not intended for residents in any jurisdiction where its use is not authorized or is unlawful. Circulation, disclosure, or dissemination of all or any part of this website to any person without the consent of Invesco is prohibited.

This website may contain statements that are not purely historical in nature but are “forward-looking statements”, which are based on certain assumptions of future events. Forward-looking statements are based on information available on the date hereof, and Invesco does not assume any duty to update any forward-looking statement. Actual events may differ from those assumed. There can be no assurance that forward looking statements, including any projected returns, will materialize or that actual market conditions and/or performance results will not be materially different or worse than those presented. The information in this website has been prepared without taking into account any investor’s investment objectives, financial situation or particular needs. Before acting on the information the investor should consider its appropriateness having regard to their investment objectives, financial situation and needs.

You should note that this information:

  • may contain references to amounts which are not in local currencies;
  • may contain financial information which is not prepared in accordance with the laws or practices of your country of residence;
  • may not address risks associated with investment in foreign currency denominated investments; and
  • is not tax or legal advice.
  • is no guarantee that any forecast, projection, assumption or any other views will come to pass.

All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. Investment involves risk. The opinions expressed are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals. This should not be considered a recommendation to purchase any investment product. This does not constitute a recommendation of any investment strategy for a particular investor. Investors should consult a financial professional before making any investment decisions if they are uncertain whether an investment is suitable for them. Please obtain and review all financial material carefully before investing.

©2025 Invesco Ltd. All rights reserved