The first real pandemic in 100 years, the bursting of a credit and asset bubble that everyone believed in, and the incredible speed of the reversal has left many people bewildered, confused and grasping at straws.

It is natural for human nature to look for hopeful outcomes at a time like this, as it takes a long time to adjust emotionally and psychologically to the secular change that is now taking place.

Napoleon liked to say that “the role of a leader is to define reality and inspire hope.” But before we can give hope, we have to define reality. And the best way to define reality is to study what will not come back in full. This is what this note will mainly cover.

Before we do that, though, some good news: world economies are beginning to walk the path towards unwinding lockdowns: after the hammer (strict lockdowns to limit contagion and avoid overwhelming public health services) comes the dance: measures designed to balance getting lives back on track (to great extent) and spreading the disease, one of economy vs. healthcare.

Read the whole note here.




Disclaimer: The value of investments and any income from them can go down as well as up and investors may not receive back their original investment amount. This communication is for information purposes only. It is not intended as a personal recommendation of particular financial instruments or strategies and it does not provide individually tailored investment advice. This document provides the views of the London & Capital Investment Team examining the fundamental background, economic outlook and possible effect on asset markets. This document is not an invitation to subscribe and is by way of information only. Nothing contained herein constitutes investment, legal, tax or other advice nor is it to be solely relied on in making an investment or other decision. If you are considering investing, you should consult your London & Capital adviser. The views expressed herein are those at the time of publication and are subject to change. Correct at time of going to press.
London and Capital Asset Management Limited is authorised and regulated by the financial conduct authority, 12 Endeavour square, London, E20 1JN. Firm reference number 143286. Registered in England and wales, company number 02112588. © London and Capital Asset Management Limited. All rights reserved. London and Capital Wealth Advisers Limited is authorised and regulated by the UK Financial Conduct Authority (firm reference number 120776) and by the U.S. Securities and Exchange Commission of 100 F street, NE Washington, DC 20549, with sec firm reference number 801-63787. Registered in England and Wales, company number 02080604. © London and Capital Wealth Advisers Limited. All rights reserved.