{"id":1898,"date":"2020-03-12T09:56:29","date_gmt":"2020-03-12T09:56:29","guid":{"rendered":"http:\/\/www.wealthatwork.co.uk\/jpm\/?p=1898"},"modified":"2020-11-18T10:56:28","modified_gmt":"2020-11-18T10:56:28","slug":"market-update-12th-march-2020","status":"publish","type":"post","link":"https:\/\/www2.wealthatwork.co.uk\/jpm\/2020\/03\/12\/market-update-12th-march-2020\/","title":{"rendered":"Market Update \u2013 12th March 2020"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><div class=\"vc_row wpb_row vc_row-fluid\">\n<div class=\"wpb_column vc_column_container vc_col-sm-12\">\n<div class=\"vc_column-inner \">\n<div class=\"wpb_wrapper\">\n<div class=\"wpb_raw_code wpb_content_element wpb_raw_html\">\n<div class=\"wpb_wrapper\"><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/0fNI6R7s6fE?rel=0&amp;wmode=transparent\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"vc_row wpb_row vc_row-fluid\">\n<div class=\"wpb_column vc_column_container vc_col-sm-12\">\n<div class=\"vc_column-inner \">\n<div class=\"wpb_wrapper\">\n<div class=\"wpb_text_column wpb_content_element \">\n<div class=\"wpb_wrapper\">\n<p>As we wrote in yesterday\u2019s Market Update (<a href=\"https:\/\/www2.wealthatwork.co.uk\/mywealth\/2020\/03\/11\/budget-2020\/\"><strong>please see here<\/strong><\/a>), while the coordination between the UK government and the BoE delivered a positive and powerful response to the coronavirus outbreak, we would also need a co-ordinated and coherent \u201cdo whatever it takes\u201d approach from the US and the Eurozone to support the global economy and global equity markets.<\/p>\n<p>We had hoped that Donald Trump would unveil a massive economic aid package which included suspending payroll tax until the US election in November 2020.\u00a0 Unfortunately, he didn\u2019t announce any concrete stimulus measures \u2013 instead he simply announced that he was suspending all travel from the 26 countries in the European Schengen border-free agreement (so the UK is not included in this restriction).<\/p>\n<p>Unsurprisingly, global equity markets were not impressed and have fallen heavily.\u00a0 As we write, in the UK, the FTSE-100 is currently down 5.8%, while in the US, the S&amp;P 500 is expected to fall again this afternoon despite falling 4.9% yesterday.<\/p>\n<p>The ECB is meeting today and we expect the central bank will provide more monetary stimulus, but with limited room to manoeuvre it may not be enough to improve sentiment \u2013 history has shown us that global equity markets can deal with any eventuality, but hates periods of uncertainty \u2013 and the coronavirus outbreak is a big uncertainty \u2013 hence the need for the US (the world\u2019s largest economy) to step up and announce a substantial fiscal stimulus to cushion the potential turmoil.<\/p>\n<p>Consequently, we would like to repeat our previous statements that while we fully understand and appreciate that the current equity market weakness is unpleasant and unnerving, it is very important to maintain a long-term perspective and resist the urge for any knee-jerk reactions.\u00a0 There will always be periods of market uncertainty and volatility and this current period is no different \u2013 and that\u00a0<strong>my wealth<\/strong>\u00a0takes a long-term approach to investing, because evidence shows that this leads to better outcomes as time in the market is more important than trying to time the market.\u00a0 However, whilst we remain positive on equities over the long-term, particularly those in Asia and Emerging Markets, with infections continuing to rise, we expect equity market volatility will remain elevated in the short-term \u2013 and as such we are maintaining our short-term cautious stance with a slightly higher than normal level of cash (including liquidity funds).<\/p>\n<p><strong>Investment Management Team<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n  <\/div> ","protected":false},"excerpt":{"rendered":"<p>As we wrote in yesterday\u2019s Market Update (please see here), while the coordination between the UK government and the BoE delivered a positive and powerful response [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"_links":{"self":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/1898"}],"collection":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/comments?post=1898"}],"version-history":[{"count":2,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/1898\/revisions"}],"predecessor-version":[{"id":2220,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/1898\/revisions\/2220"}],"wp:attachment":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/media?parent=1898"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/categories?post=1898"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/tags?post=1898"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}