Weekly Thoughts 6 March 2020

The current talking point at the top of the list of all things is obviously the Coronavirus situation. Some Comments on the topic from a few asset managers I use for you:

• Companies like Nestle will be resilient. Consumers cannot go without its products.
• The recent market drops have created some good buying opportunities.
• We moved quickly to sell our equities in travel, selected banks, emerging markets and some China-focused technology.
• The sorts of investments that will suffer long-term scars are not what we hold for our clients.
• … a market shake-up gives us the opportunity to be on the lookout for new, attractively priced investments. We are actively looking to use the cash holdings in our Global Funds for this.
• Even with the lower profits and earnings that will be experienced, we urge long-term investors to hold and overcome the short term negative sentiment.

It seems that I now live in the area of the first confirmed case in South African. I shall have to become a hermit.