Insights
Portfolio Managers Matthew McLennan, Kimball Brooker and Matt Lamphier discussed recent market volatility and what may lie ahead.
The emergence of the novel coronavirus and the economic impact of efforts to contain its transmission led to a deep, sharp repricing of risk assets during the first quarter as liquidity concerns emerged across financial markets. The first-quarter market rout began as a typical flight to safety, with risk assets declining sharply while traditional safe havens rallied.
The price of gold was volatile in a momentous first quarter that saw both the emergence of a global health crisis and a significant correction in global equity markets, though the metal very much served its purpose as a potential hedge against extreme outcomes.
Global equity markets ended a robust 2019 on a high note, with a strong fourth quarter rally adding to already impressive yearto- date gains. Performance over the last several months of the year was driven mainly by sectors of the market, such as technology and health care, thought to have good long-term growth prospects.
In our year-end 2019 commentary we talked about the importance of portfolio balance given our wariness of the indicators suggesting 2020 could be a very good year for equities. While we noted that an exogenous shock could throw upbeat market calculations askew, neither we nor anyone else anticipated the emergence of a global pandemic that would exert a powerful impact on markets and economies.
The emergence of the novel coronavirus and the economic impact of efforts to contain its transmission led to a deep, sharp repricing of risk assets during the first quarter as liquidity concerns emerged across financial markets.
On April 7, 2020, we spoke with Idanna Appio about recent market developments and the potential short- and long-term macroeconomic impacts of the coronavirus pandemic.
Investors initially downplayed news of the novel coronavirus outbreak in China, and equity indexes continued to press higher for the first weeks of 2020 as they did for much of 2019, led by growth-
Though equity indexes have bounced off their worst levels of 2020, Matt McLennan, head of First Eagle’s Global Value team, appeared on Bloomberg TV to caution that the full impact of the pandemic’s
The co-managers say times like these make the case to own gold strategically as a potential hedge and not as a bet for higher prices.
First the virus now the volatility. What’s next?
The coronavirus outbreak represents a significant shock to both supply and demand in China and is likely to have repercussions for both Chinese and global economic growth.
Portfolio Managers Matthew McLennan, Kimball Brooker
Renewed easing by central banks worldwide was the defining move in financial markets during 2019, instigating a robust rally that left a number of major equity indexes at or near all-time highs by
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