Insights

Extraordinary times in markets

farrelly March 2020 Update

At the start of last week I wrote,

“The market correction at the end of February has taken us back into Fair Value and Cheap territory for most asset classes. This is a time to be fully invested - even though it may feel uncomfortable. This is what long-term investing is all about.”

What an understatement. Today that statement is even more true. This is a time to be buying not selling.

We are not finished with volatility

farrelly August 2020 Update

A large part of the downturns in February and March have been recovered as calm has returned to the markets. Nonetheless, we believe that it is too early to say that the market impacts of the pandemic are behind us. 

There are still a huge number of uncertainties. We don’t know if the Victorian outbreak is about to be brought under control. We don’t know if the other states will be able to avoid secondary flare ups and shut-downs. We don’t know if and when, and indeed how, the US will bring their rate of new infections under control. We don’t know if the extensions to the Job-Keeper and Job-Seeker programs will be enough to prevent a huge number of small business failures in this country. We don’t know what will be the permanent effects of the pandemic on consumer spending patterns worldwide.