InvestNow News – 13th Mar 20 – Pie Funds – Market Watch … Unchartered territory for Coronavirus epidemic

Mike and Liam follow up on last months’ episode and discuss how markets fare as Coronavirus fall-out spreads.

AS THE SPREAD OF THE COVID-19 CORONAVIRUS TAKES US INTO UNPRECEDENTED TERRITORY, INVESTORS WILL HAVE TO COPE WITH INCREASED VOLATILITY AND SOME BIG MARKET FALLS.

“In modern times we haven’t seen an epidemic of this scale,” says Pie Funds chief executive Mike Taylor. “So for investors it’s about trying to quantify what effect that will have on companies and economies.”

From an investment perspective you needed to go back and focus on your underlying strategy, he said.

“Am I a long term investor or am I a trader? If you are a long term investor then you shouldn’t really alter your investment strategy.”

Meanwhile the economy is taking a bigger hit than first hoped and now faces long term disruption.

“There has been significant disruption to the supply chain in China, we hear reports that some of those factories are coming back on line, but it won’t be to the same level that it was.”

Consumers were now changing their behaviour – most obviously around travel and tourism.

THAT WOULD HAVE BIG CONSEQUENCES FOR NEW ZEALAND, TAYLOR SAID.