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  • Nigel Douglas

COVID-19 Market Commentary Changes

The speed and depth of the equities market sell-off and volatility across other asset classes has been astonishing even given the situation that many of these markets were over-valued in the first place. Governments and central banks have stepped in to 'hibernate' economies so they can re-start once the COVID-19 virus is under control.

My personal view is that having listened to and read quite a few market commentaries in recent days, it is interesting to note that sentiment has changed from 'buy the dip' or expecting a 'V' shaped recovery (in terms of GDP or economic growth) to 'sell on rallies' with regard to risk assets. Some market participants clearly have an agenda to protect their portfolios in illiquid market conditions so it is important for investors to evaluate any public or media advice carefully.

Also, given the unprecedented nature of the situation, there are 'unknown unknowns' that lead to uncertainty and noise as incoming heath and economic data is assessed. However, there is considerable expertise in the wealth management industry so it is definitely important to read all available information from quality sources.


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