In the first quarter of 2020 we witnessed the fastest and sharpest decline in economic activity in history.
In King & Shaxson‘s mind only HG Wills called this one right, and that was back in 1897 when bacteria killed the Martian invaders. Too many commentators are erroneously comparing the current market turmoil to the GFC in 2008 or the depression of 1929. Neither of these make any sense at all, this is something new and both biological and truly global. This virus could lead to even longer lockdowns or it could go as fast as it came. What is new is that have already seen record global fiscal and monetary intervention.
This has accelerated existing faultlines in the oil and gas sector (along with the OPEC/Russia spat), commercial real estate, automobile and airline sectors and created demand problems in tourism, hospitality and travel. These changes will bring winners and losers.
King & Shaxson will be exploring the post-coronavirus world in our upcoming ESG webinar on 28th April.
One area they will cover is how in the first quarter of 2020, ESG investments performed better with less volatility. They will explore:
- The key drivers behind this
- Why the world will not be the same
- Why coronavirus has sped up the move to the new economy and more impact orientated investments
- Some actions taken within King and Shaxson portfolios