Market Update

Investors always have a long list of things to worry about but, in 2020, the coronavirus COVID-19 has very quickly eclipsed them all. With global stock markets gripped by fear and currently languishing far below the levels at which they started the year, we wanted to take stock of the evolving crisis and provide reasoned reassurance where possible.

History suggests, however, that selling is usually an inappropriate response to unfolding events, particularly from a long-term perspective. Selling assets in such a febrile market environment is typically an emotional response, not a disciplined response.

Last week our team met with our de-facto Chief Investment Officer, Michael Hughes, who recorded an audio podcast that you can find on our website. In this, he recaps on all the causes of the stock-market extreme volatility, because there is more than one cause. He explains the measures that Central Banks and Govern