Investment Insights: Long-term impact of Covid-19 policy response

Published by Sarah Lochlund, Matt Tickle on

Our experts

  • Sarah Lochlund

    Sarah Lochlund

    Principal and Senior Investment Consultant

  • Matt Tickle

    Matt Tickle

    Partner

  • The Covid-19 outbreak and the responses put in place to slow its progress have caused extensive disruption to society since December 2019. 

    In an attempt to soften the negative economic impacts of these disruptions, central banks and governments around the world have provided support on an unprecedented scale. They have given a clear message, they are willing to do “whatever it takes” to get through these testing times.

    There has been a wealth of press focused on the short-term impact on financial markets and investors. We believe it’s important not to get bogged down in the day-to-day headlines, but more on the longer-term impacts. 

    There are three key messages that investors should keep in mind:

    1. Recovery: We expect the initial recovery, when it comes, to be much quicker than after the global financial crisis. 
    2. Assessing uncertainty: There is an unprecedented level of uncertainty surrounding investing.  Be cautious about straying too far from your long-term strategy. 
    3. The lasting impacts: Corporate profitability, debt and inflation may look different in the post-Covid-19 world. Watch these spaces and consider what it might mean for you.

    To discover more, please download the full paper below.

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