Contact

News & Insights

NEWS WRAP – The Coronavirus Markets Bounce Back

This is not to say that the markets are over the worst of the coronavirus crisis; if, as seems likely, the pandemic continues apace and eventually becomes endemic in the population, it would be reasonable to expect plenty of panicked moments along the way.

“It’s a little too soon for us to call an all-clear just yet,” Rob Haworth, a senior investment strategist at US Bank Wealth Management, recently told CNN. “We don’t think we’re just there yet,” he added.*

Inevitably, it is going to take time for the full scale of the coronavirus outbreak to become clear. For example, a number of companies, including Apple (AAPL), Microsoft (MSFT) and Coca-Cola (KO) warned of supply-chain disruptions, while Harvard Business Review predicted that the peak of supply-chain disruption would not occur until mid-March when, it anticipated, thousands of companies would have to halt assembly and manufacturing plants across the U.S. and Europe. It is thought that those companies relying on China for parts and materials will be the hardest hit. **

Meanwhile the Organization for Economic Cooperation said that Covid-19 poses the single largest threat to the global economy since 2009 and could cause markets to halve. ***

Against this background it remains critical that economic policymakers and investors alike remain vigilant. Although Federal Reserve Chairman Jerome Powell has acknowledged the risks of coronavirus and indicated that the central bank would “act as appropriate”,* with a cut in interest rates now looking increasingly likely, it is likely that those investors who remain disciplined will see their assets bounce back in the long-term.

“The stock market will recover once investors perceive that the worst is over for the global health crisis and that earnings will start growing along with the global economy,” commented Ed Yardeni, president of investment advice firm Yardeni Research. “We think that could happen by mid-year.” *

Authoritative cross-border investment advice

Blacktower in the US works to help clients achieve their financial and retirement goals by providing knowledgeable and personalised investment advice. We work across the US and can help you ensure that your retirement planning aligns with your goals. Contact us today for more information.

* https://edition.cnn.com/2020/03/02/investing/dow-jones-coronavirus-stocks/index.html Accessed 04-03-2020

** https://hbr.org/2020/02/how-coronavirus-could-impact-the-global-supply-chain-by-mid-march Accessed 04-03-2020

*** https://www.bbc.co.uk/news/business-51700935 Accessed 04-03-2020

Other News

Retirement Planning During Your Second Career

When the Social Security program came into force in 1935 the official retirement age in the USA was 65, yet the average life expectancy was 61*. Nowadays, average life-expectancy is around 76 years** and can be much higher among educated, healthy-living individuals, especially women.

Increased life expectancy creates a need for greater retirement assets in order to ensure sufficient income during retirement and one consequence of this is the advent of later-life careers while another is the increased imperative to plan early and to ensure a diverse portfolio of assets.

Read More

BLACKTOWER FINANCIAL MANAGEMENT GAINS ACCESS TO PANAMA MARKET

International investment and financial planning firm, Blacktower Financial Management Group, announces the launch of its offering in Panama. Gibraltar, 10th October 2022 Blacktower Financial Management Group, providers of individual and corporate financial planning, has today announced that they are now licensed to offer their bespoke services in Panama. This follows the recent acquisition of a […]

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information: