Investing in the Time of Coronavirus
What a difference a month makes. Just four weeks ago, our monthly column was about taking profits on equities. As we write today, there is no profits to take anymore, anywhere. “Markets take the stairs up and the elevator down”: they tumbled in the meantime. Equities are now down -30% for the year, High Yield -20%, and even Government Bonds and Gold are lower, hit by the rush to preserve capital. The Coronavirus crash of 2020 will certainly be remembered in history as were 1929, 1987 and 2008, but the key difference is obviously that we are still in the middle of it. Today, we will share our analysis of the current situation, before formulating recommendations of what to do, and maybe more importantly what to avoid doing, in such an extraordinary context.