Portfolio and Markets update

The medical and scientific specialists advising the government now appear to be confident that, as a result of all the measures that have been taken and adhered to, there is a flattening of the curve of infections and in resulting deaths. As a result, we are entering a phase where there is increasing discussion about when and how the current restrictions on normal life should be lifted.

The unprecedented financial measures taken by governments and central banks have had the desired outcome of arresting the falls across global stock markets and since the latter part of March, stock markets have begun to stabilise. This does not mean that we are at the beginning of the end, but we are more likely to be at the end of the beginning. The informed view is that we have been through the first phase of a severe market disruption and that is the phase of indiscriminate selling or panic. This was when there was no differentiation between relatively safe-haven assets and those which carry a much greater risk.