D-PIMS Weekly Market Update - Week of 24th to 1st March 2020
Today’s Monday Update:
Over the last week most of the headlines were full of Coronavirus developments, due to its sudden spread outside of China:
• Monday saw news of the Coronavirus outbreaks in Italy and Iran. These early real signs that the virus was spreading well beyond the China region did finally cause the world’s stockmarkets to take fright, for the first time since the Coronavirus crisis started.
• The European Union said on Tuesday that talks on post-Brexit ties with Britain would kick off the next Monday (2nd March), but warned that the process would be “very hard” and could fail if London fails to secure the Irish border as previously agreed. Dutch Foreign Minister Stef Blok said: “The time pressure is immense, the interests are huge, it’s a very complicated treaty, so it will be very hard work.”
• Wednesday saw fears around the Coronavirus intensify, with an increase in the number of countries reporting new cases and the United States warning of an inevitable pandemic, after reporting 57 cases of the virus.
• Over the week Global Stockmarkets saw the biggest sell off since the last quarter of 2018. This does come after a long rally and with many Markets previously at all time highs. Markets are likely to be a bit rocky for a while, with the main concern being the knock-on effect to the wider economy from any industrial ‘shut downs’. Ironically the Far Eastern Markets fared the best, not surprisingly given that the Coronavirus in China seems to be more contained now. Again, not surprisingly Europe was hit the hardest, given the rapid rise of cases in Italy.
• Inevitably the D-PIMS Portfolios were down, but were generally spared the full force of the drops, due to their diversification. Obviously the higher risk portfolios were down the most.
The value of investments and the income from them can fall as well as rise and you may not get back the original amount you invested.
Past Performance is no guarantee of, or guide to future returns.
The comments made above represent our interpretation of events and market views and are in no way a guarantee of future investment performance.