Shane Oliver, Head of Investment Strategy and Chief Economist
The attached note looks at the ongoing threat posed by coronavirus to global growth and investment markets. The key points are as follows:
- The rout in financial markets has continued, on the back of coronavirus, made worse by a flow on to oil markets.
- The risk of a deeper hit to economic activity has risen. Key things to watch are the daily number of new cases, measures of economic stress and policy stimulus.
Key things for investors to bear in mind remain that: share market falls are normal; selling shares after a fall locks in a loss; share pullbacks provide opportunities; and to avoid getting thrown off a long-term strategy it’s best to turn down the noise during times like this.