Since our 2020 investment note in January, things around the world have changed dramatically, we have all been presented with a very unique situation which nobody could have foreseen.
Volatility and uncertainty never feel good, but the foundation underlying them is important. Daily market moves in response to the COVID-19 outbreak have matched the scale of those seen during the financial crisis over a decade ago. But we must remind clients that this is not 2008. The coronavirus shock is not one caused by a crisis in the core of the financial system and spreading to the rest of the economy. The economy is on much stronger footing and the financial system is much more robust this time around. In fact, policy measures and safeguards put in place since 2008 have only served to strengthen the financial system.
So what is our current stance? We strive to remain objective throughout any stage of a cycle and focus on the facts. Decades of stock market history tell us “this too shall pass.” This, coupled with our own experience in capital markets, suggests that the most prudent tack for a long-term investor is to stay the course ― and to prepare for the opportunities that may arise as markets emerge from the turmoil in the coming weeks and months.
For our full detailed Quarterly Update and Review, click the link below: