Market Commentary April 2020

Category: Market Commentary

06-04-2020

The losses from this pandemic have been sudden, shocking and real with a global recession now an almost certainty. The depth and length of that recession is contingent on multiple factors, including the fiscal policy response from governments and the monetary response from central banks; the success of stay-at-home initiatives in flattening the curve; medical advances in treatments and vaccines; and the potential seasonality of the virus. It is worth remembering that the economy was strong heading into the pandemic. Interest rates were low and the banks, which provide necessary liquidity, had passed stress tests predicated on worse scenarios. People have shown time and again that they do recover from even unthinkable crises. That innate trait will be tested severely this time, but we will come through.

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