Markets Begin to Look Beyond COVID 19

Insight
News
By
Jeffrey Deans

Save & Invest Corona Virus Update The NHS and the Government are coming under increasing pressure, but markets are beginning to imagine a world post the virus. The slowing infection rate in France and Italy and the rapid stimulus by the world's policy and lawmakers has created some optimism and delivered a bounce in global equities and corporate bonds. Despite this positive news, equity markets are still down by over 20 per cent and it would be foolish not to expect more volatility, indeed some of it is likely to be extreme, in both positive and negative directions.

Undoubtedly some sectors and debt laden business will have been hit very hard by this crisis and we expect some will default on their debt, but many of these businesses were already in trouble. As in any crisis, opportunities also arise and many managers are pointing to success stories in their portfolios in the areas of health, education, technology and distribution. We do not know what shape the recovery, when it comes, will take, but we believe our strategy of remaining invested, continues to be correct.

Stock markets recoveries are notoriously unpredictable and missing a few key days in the recovery phase can mean those investors who have come out of markets can greatly miss out.

Despite our offices being closed, we are working as normal and are speaking with fund managers and joining international webinars; making the most of modern technology to hear the views of professionals worldwide. Our client reviews continue as normal but are carried out by phone or video call. If you wish to speak with your adviser, we are all available and happy hear from you.

As the office is now unmanned, in compliance with the government requirements, we will no longer post documents and access to our buildings for postal services is uncertain. Therefore, if you do post us anything, please email or phone us first, so we are aware of this.

As our phones are being diverted to our team, it may be difficult for your call to be answered normally, so where possible please either email your adviser directly or email info@saveandinvest.co.uk and we will call you back.

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