With the virus outbreak still in full swing, some Western nations are already mulling a relaxation of lockdown. In the US, that has led to a showdown between the layers of government. These are tough decisions to make, notes our chief investment officer Julian Chillingworth.
Our lives have been turned upside down by the coronavirus crisis, which is having a profound impact on the global economy and financial markets. Governments are working hard not just to slow the spread of the virus but also to help businesses and their employees. They've announced a range of extraordinary measures, which are being supported by action from central banks.
Europe’s COVID-19 cases seem to be peaking, the UK has at least another fortnight to go and America’s problems seem to be only beginning. The world is now in a race against the clock, notes our chief investment officer Julian Chillingworth.
The pandemic is spreading rapidly in the US, which is now following the rest of the West into self-isolation. Beware of leverage and expect dividend cuts, warns our chief investment officer Julian Chillingworth.
With dividends pressured, companies focus on financial strength
The global economy has suffered a shock that is as ‘novel’ as the coronavirus. But the response has also been unprecedented, and should bolster the recovery when it comes.
Market volatility has been through the roof, with US stocks first falling rapidly and then shooting higher faster than at any time since the 1930s. Despite these jarring moves, financial markets are unlikely to close, argues our head of asset allocation research Ed Smith.