Coronavirus Impact on Global Markets

By Stewart Bicknell

We are seeing the Coronavirus having a major impact on global markets. China is the second largest economy in the world, with an interdependent supply chain across Asia that makes it the most important economy for global growth. At the moment, it is essentially in lock down.

 

Even our most adventurous clients have well diversified portfolios (within mandate guidelines) which include some combination of regions we expect to be less risky in the face of global turmoil. We are long term investors and have faith in our chosen fund managers on weathering such unexpected events.

 

Unless you have a specific plan with your adviser, we haven't undertaken any portfolio activity at this stage but aim to monitor the situation closely.

 

Clearly, the markets have also assumed that any disruption will be short lived with a V-shaped recovery, which is a reasonable argument for markets not to correct sharply. Many governments are taking action to limit the impact and allow global economies to resort back to normal.

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