Equities rallied sharply as a $2 trillion US stimulus package restored some confidence to markets. High yield bonds had a better week and Ford became the latest ‘Fallen Angel’ to be downgraded from investment grade status. We consider the diverging performance between oil and gold, before looking ahead to US employment figures at the end of this week.
The discussion today focuses on recent volatility in financial markets and the steps taken to restore market confidence. We then outline Architas’ investment response and highlight the importance of staying invested through these periods of market turbulence.
Massive stimulus measures from governments and central banks caused markets to whipsaw in the face of crumbling forecasts. Commodities markets, such as oil and gold, were hard hit by selling. We reiterate our investment response in the face of these moves.
Central banks and governments have taken unprecedented steps to support economies hit by the spread of coronavirus. We discuss the scale of these moves and consider what it might take to restore confidence and to calm financial markets.
Discussion focused on another surprise rate cut from the US Federal Reserve and its immediate impact on equities, bonds, gold and oil. Our Deputy Chief Investment Officer looks at continuing government and central bank responses to the coronavirus outbreak and assesses the prospects going forward.