Market Commentary

Q1, 2020

Summary

  • The coronavirus outbreak is a humanitarian crisis first and a financial crisis second. Our thoughts are with those directly affected by COVID-19 and those involved in the fight against the virus.
  • For most sectors, the coronavirus brought global economic activity to an unprecedented standstill. The economic crisis was magnified by the fact that the pandemic arrived late in a market cycle that was already characterized by excessive leverage and historically weak balance sheets.
  • Although governments and central banks have been quick to respond, much more action may be needed as we wait for the discovery of effective treatments and a vaccine.
  • Despite these issues, there are many attractive opportunities for investors who are prepared to deploy capital thoughtfully, but we believe it is too early to stray too far from those companies and industries that policymakers deem important.

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