We believe the Covid-19 crisis will trigger a step-change in policy, accelerate existing trends and transform investment frameworks. Government intervention, fiscal activism, corporate governance and sustainability will characterise this new order, creating opportunities out of dislocation.
In this month’s Rich Pickings we hear why inflation is likely to be some way off, how portfolios are being adjusted as the old rules are torn up, and why past experience means recovery policies could look very different this time.
Economic conditions are dire and getting worse. But risk assets have rallied sharply since the March crash, driven by central banks’ aggressive, unprecedented monetary response to the Covid-19 crisis. As economies undergo one of the fastest, deepest downturns in centuries, how long can monetary stimulus enable markets to defy gravity?
This month’s survey reveals the profound impact the coronavirus crisis will have on companies’ approach to social issues. Over half the responses indicate that companies will step up their focus on workers, consumers and the wider community as a direct result of the pandemic.
Central banks have responded swiftly and decisively to the Covid-19 market crash. Their unprecedented intervention has stabilised markets, improved liquidity conditions and reduced trading costs. They are likely to do more, given the extent of the economic shock.