Financial markets have remained very volatile as the number of individuals with the coronavirus disease has continued to increase. The last week of February was the worst week for global stock market returns since the Global Financial Crisis.
There is now greater downside and tail risks to the economic outlook than we previously anticipated, and we see a potential delay in return to growth. In our base case, we expect a sharp economic slowdown in the first half of the year in most economies, followed by a steep recovery
Investors may want to consider rebalancing their portfolios following the large market movements over the last few weeks.
On March 6, 2020, we hosted a webinar with Mercer’s investment specialists, Rupert Watson, Head of Dynamic Asset Allocation and Niall O’Sullivan, European CIO of Investment Solutions, who discussed their latest views on the ongoing coronavirus outbreak. Our specialists touched on the Macro-economic views on the latest of the coronavirus outbreak, market volatility and implications for asset allocations as well as Investment considerations for institutional investors in the current market environment. Please listen to the replay here.