Markets and the PM begin a welcome recovery


The Noise

  • Boris Johnson was moved to the intensive care unit on Tuesday after his coronavirus symptoms worsened. The Prime Minister was admitted to hospital on Sunday evening with persistent symptoms. Yesterday, Chancellor Rishi Sunak announced that the Prime Minister is improving and is now sitting up in bed. Downing Street politely declined President Trump’s offer of help on Tuesday, after he contacted all of Boris’ doctors offering his help and urged top US drug companies to do everything they could to help his “really good friend”.

  • Globally, the spread of the virus has continued to accelerate this week, with global cases surpassing one million yesterday. France, Spain and the UK all recorded their deadliest day so far on Wednesday and the US death toll is now greater than China’s official count. Italy however recorded the lowest daily increase in deaths on the same day, demonstrating the effectiveness of the country’s lockdown measures which are being replicated throughout Europe.

  • China reported no new coronavirus deaths for the first time on Tuesday since it started publishing daily figures in January. The number of new cases in China has been slowly declining, now at about 30 per day. China is concerned that a second wave of infections could be brought in by foreign arrivals and has therefore shut its borders to foreigners and reduced international flights.

 

The Numbers

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The Nuance

As the situation we all now find ourselves in evolves, we are beginning to adapt to the containment phase of the fight against the Coronavirus. The next step in this process is for governments to begin to understand how to restart economies in the midst of the virus. The threat the Coronavirus poses isn’t going to dissipate overnight; governments and businesses need to start to work out how exactly to get the cogs of the economy turning again without risking a second wave of new cases.

As a picture emerges as to what that might look like, investors will be able to evaluate which sectors will emerge first and hence identify investment opportunities. However, it will take time for governments to figure out how to lift lockdown rules and restart economies without risking the health of their populations.

As an investor, most of the time you are holding your investments as the passage of time allows companies to generate revenues and earnings, which in turn pay dividends and accumulate capital growth. During this time we constantly review the portfolio risks and monitor our investments, aiming to hold for the long term and allow compounding to work its magic. If you buy a stock and sell it five years later for a profit, you acted on only two days – the day you bought, and the day you sold. On over 1,800 days you did nothing. 

Last quarter, the rapidly changing market conditions meant that we were more actively trading than normal. However, as markets adapt and settle down to the new conditions, we once more find ourselves in a time where patience is required. Whilst you can still expect us to react to incoming data and respond accordingly to our analysis, the intention is to be patient and hold on to our investments, allowing time to compound their value and build wealth over the long-term.


Virtual Event Programme

Rather than a “Quote of the Week” section this week, we would like to take the chance to tell you about a programme of virtual events we are going to be running.

The last few weeks have been extremely testing for everyone, everywhere. We recognise that in the midst of this uncertainty our primary role is to act as stewards of our clients’ wealth and to navigate a way through the storm on their behalf. However we also know that many are finding this new way of living challenging. We have therefore designed a programme of events to help clients and contacts stay healthy, provide some light-hearted education and have some fun whilst we find ourselves house-bound.

Please click on the flyer below to our website and the schedule of virtual events we have created with experts in a variety of fields, designed to offer something for everyone and accessible with just a click of the button.

Please sign up to any and all events that you feel might be relevant to you and/or pass onto to your own clients as appropriate. Further information on each event is available by clicking the ‘REGISTER HERE’ hyperlinks on the website and you can register for any number of these events using the Eventbrite webpage.

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The value of investments and any income from them can fall and you may get back less than you invested.