22 Mar 2020
Markets are very weak and volatile, as you would expect with such uncertainty around the Covid-19 outbreak.
Some days the moves are indiscriminate and everything plunges to a broadly similar degree, on other days our higher quality names are outperforming. As markets have slumped, and governments and central banks have tried to make sense of what is going on, our portfolios have so far coped very well. Companies that are operationally impacted – restaurants, airlines etc – are seeing severe weakness. Parallel to this is the interplay in the oil market between Saudi Arabia, Russia and the US which has led to sharp weakness in the oil price, and that means the energy sector is also suffering.