Markets

MARKETS

Coronavirus, how bad will it get and what should investors do?

Coronavirus, how bad will it get and what should investors do?

By Don Steinbrugge, Agecroft Partners – Equity markets around the world sold off last week because of uncertainty relative the Coronavirus’ impact on the global economy and corporate profits. No one knows how bad the economic impact might be, but the worst case scenario or potential “tail risk” is truly frightening relative to loss of life, contraction in global GDP and implosion in the financial markets. 

MARKETS

Not going viral… Hedge fund managers maintain discipline despite market jitters over coronavirus

Not going viral… Hedge fund managers maintain discipline despite market jitters over coronavirus

Equity markets have merely sneezed in response to the coronavirus (Covid-19) and while there is uncertainty over how much fear has been priced in, as infection numbers continue to rise, hedge funds have navigated developments with discipline and a modest reduction in net long exposure. For now, rather than trying to react to short-term moves, managers are taking a prosaic stance.