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MARKET INSIGHT - May2020

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Why common sense matters amid persistent uncertainty

After the largest contraction in several decades in March, stock markets – and the S&P 500 in particular – saw the sharpest jump since 1991 in April.
These erratic shifts indicate a prevailing sense of uncertainty that may leave international investors wondering how to cope with what is a historic crisis in many respects.
When panic takes hold of the markets, as it was the case in February and March, we can tend to...

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MARKET INSIGHT - April 2020

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Disruption reigns supreme on the markets

What remains to be written about March 2020, which will no doubt go down in the annals of economics and finance?
The plunge of asset prices says it all: frightened by the spread of Covid-19 and the ensuing economic uncertainty, investors have given way to panic. The ability of price mechanisms to...

 

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MARKET INSIGHT - March 2020

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Fear returns to the markets with a vengeance – as panic

At first, market participants were reassured by mounting evidence that the epidemic was being brought under control in China and this drove risk assets to new highs. Then fears intensified when it was confirmed that the virus had spread to other regions, especially Europe, leading to a sharp fall in stock markets and a retreat to the most secure assets, bonds in particular.

If we take a closer look at market behaviour since mid-January...

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