25 May, 2020

Investment Outlook - Reflecting on What Comes Next

The latest edition of Investment Outlook looks at the short and long-term impacts on individuals and businesses as a result of COVID-19, and how investment psychology has a critical impact on investor behaviour and achieving investment objectives. This link takes you to our May publication of the Investment Outlook – Reflecting on What Comes Next.

Amongst the topics covered in this edition we highlight:

The Short- and Long-Term Impact of COVID-19

As COVID-19 spread rapidly throughout the world governments took far more extreme measures to limit the health impact on their citizens than we would have imagined prior to the outbreak commencing. The adverse economic impact of these measures has been dramatic as has the response from central banks and governments to offset the negative impact. The effect on individuals and businesses will vary considerably. As well as significant short-term impacts, the virus is also likely to trigger some longer-term changes. 

We include sections on:

  • Where investors can seek income in a world where interest rates are likely to be unattractive for longer than expected only three months ago. 
  • Companies that face a challenging operating environment, which is likely to become even more difficult due to the impact of COVID-19.
  • Companies that are well positioned to benefit from new emerging trends in the world.

Investment Psychology

In many respects, this is the most important topic covered in this edition. The past few months have tested many investors’ nerves to the extreme. In such circumstances it is easy to make mistakes that you live to regret. Therefore, it is helpful to understand investment psychology, the influence it has on our thinking and decision making, and what we can do to control it.

News & Insights