Risks, Responses and Our Outlook for Volatility

By Victor Zhang, Keith Creveling, John Lovito, and Greg Woodhams - March 10, 2020

The coronavirus has already affected thousands, and its full toll on populations and economies is largely unknown. People are understandably scared and anxious about the disease’s future trajectory.

We think market volatility is going to be the norm until countries can contain COVID-19. Uncertainty is prevalent, and major indices have corrected. Some have approached bear territory, not quite breaching the -20% mark as of this writing. In this latest Q&A, a group of our senior investment professionals address key questions, such as:

  • Is this an economic crisis? 
  • Is the oil market driving the most recent volatility? 
  • How is COVID-19 affecting profits? 
  • To what extent do central banks have room to support the markets? 
  • How has recent volatility affected technology stocks? What’s the outlook for energy stocks?

 

Victor Zhang
Chief Investment Officer
Keith Creveling, CFA
Co-Chief Investment Officer
Global Growth Equity
John Lovito
Co-Chief Investment Officer
Global Fixed Income
Gregory Woodhams, CFA
Co-Chief Investment Officer
Global Growth Equity,

Risks, Responses and Our Outlook for Volatility

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