At Globalance, each client receives a personal investment report- every asset is unique and thus deserves attention in various ways.
The 2020 investment year will go down in history. Starting in China, the COVID-19 pandemic spread over the entire world, whole countries were quarantined, and a global recession ensued. The decline on the financial markets was followed by a tremendous catch-up with a positive ending.
Nursing the world economy back to health is a process whose duration is uncertain, neither can we now say how long it will be before the patient gets back to their former strength — there is simply no precedent to judge by. None of the economic indicators could have provided a real warning about the sudden shutdown; the crisis took market participants by surprise and confronted them with various challenges. During the first wave of infections, volatility, the stock exchange thermometer, showed higher values than during the 2008 financial crisis. Stock markets recorded the biggest single-day losses in all history in March. Governments and central banks owned up to their responsibility and took decisive action, flooding the financial markets with liquidity in an effort to mitigate the negative economic consequences as best as possible. The stock exchanges soon saw the biggest single-day rise ever — leaving analysts with a whiplash from the 2020 rollercoaster ride.
Better weathering of the pandemic thanks to future orientation, positive footprint and financial resilience.
Speed, change of direction and a lack of foresight best describe the 2020 investment year — but it was also a valuable stress test for our investment strategies. We were able to prove that the triad of future orientation, positive footprint and financial resilience made sure that our client portfolios were able to weather the pandemic better than the wider market. These extreme events further accelerated the structural change which has already been going on and the following pages will show you what that means for you as an investor. We hope you enjoy reading them.