There continues to be considerable market volatility due to the spread and containment measures in relation to the new strain of coronavirus. Some of this has been led by sentiment and some by the short-term financial impacts of the containment measures being used to try and stop the spread.
Volatility in markets is nothing new and while unexpected events like this cannot be predicted, the processes and management of our investment strategies always factor in the possibility of these types of market reactions.
Our job remains to manage for our client’s long term financial objectives and short term events such as these do not change this approach. Our aim is that by utilising the correct strategies and expertise we can shield our clients from the worst of the negative effects and therefore give them the best springboard for future gains.
Its important to remember that when all economies are in reverse clients cannot be 100% protected from the effects. Additionally, when day to day volatility remains so high, trying to ‘time’ the markets in a bid to avoid all of the downside can invariably lead to greater losses in the long term. Our position is to trust in the strategies already in place.
Of course, we continue to monitor the situation and diligently work with our investment partners to ensure the best possible results for our clients. As part of this we have already put in place further short-term measures with our investment partners including:
- Weekly stress testing, performance analysis and summary of activity will be added to the standard analysis
- Revised market outlook with analyst and manager expectations updated regularly
- A business continuity plan in the event we end up in an Italian style lockdown.
As things stand, we will continue to communicate relevant information and are on hand for our clients should they have specific questions. If we feel that any future development required any change in strategy for any of our clients we would immediately be in touch to take further action.
Below is more detailed market commentary for your consideration.
Document – Market Commentary 6th March 2020