20 May Assessing the impact of Coronavirus on the markets: Our view
Have we learnt from the past? SARS in 2003 and Spanish Flue in 1918 have taught us on how to behave in times of uncertainty, but will the markets adapt to a possible pandemic?
The recent surge of COVID-19 virus cases outside of China, especially in Iran, Italy and Korea, has shocked the markets as investors flee to safety in fear of a global pandemic, we view this as a black swan event. However, our long-term view is that the correction is healthy for the markets and will be a speed bump on the road to the global economy recovery.