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Coronavirus Correction

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Coronavirus Correction

In the wake of the latest news about the coronavirus cases and the sharp correction seen in global equities, Andrew Macken, Montaka’s CIO addresses two key questions which are being posed by investors. To learn more, watch this special edition of Montaka’s Spotlight series.

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Andrew Macken is the Chief Investment Officer of the Montaka funds and the Montgomery Global funds. He established MGIM in 2015 in partnership with Montgomery.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.

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4 Comments

  1. Hi Andrew,

    It’s not a flu. And you seem to be underplaying the consequences of COVID19.

    I for one am not going to rely on gov/central banks bailing the equity and debt markets out again. They kicked the can down the road during the GFC, I don’t believe there is much road left.

    • Fair enough, Jesse.
      My apologies if I came across as underplaying the human impact of COVID19. Was certainly not my intention.
      I was trying to make sense of the data in front of us – which is changing every day.
      Admittedly, the economic impact of containment is looking more significant than when we shot that video two weeks ago.
      Thanks for the feedback,
      -AM

      • The virus is almost nothing to do with this, it’s a sideshow, and a great excuse for the central banks and governments to bail out the massive over excess and all the asset bubbles that go with it. Take the US shale oil ponzi for a start, cost of production = US $73 a barrel, if crude oil is going to trade around US $40, how is cheaper lower rates going to fix that? We have had ever cheaper money for three decades now, resulting in huge over capacity everywhere, we are at Zero rates now, there is no fix for over production now except lower production in almost everything, it’s a deflationary spiral, that cannot be halted.
        Gold and silver have been my favourites in the last year, nothing else makes sense, even after a %20 correction, this will go on for years.

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