COVID-19 – An Update – 24th March 2020
24th March 2020
“There are decades where nothing happens; and there are weeks where decades happen.” – Vladimir I Lenin
I wanted to set out further my thoughts on what is going on, in as much as I can understand them. I wrote back at the end of February that the COVID -19 outbreak (now a pandemic) was a genuine threat to economic stability – this now appears to be a statement of the obvious.
Firstly, the loss of life, around the pandemic, is significant and something that many of us will find hard to bear. Amongst all of this, a tragedy is developing before us. We must do as necessary to minimise the loss of Life. We must act selflessly as individuals for the broader good, help others to act similarly.
A global recession is coming (already here) and a deeper more prolong recession like that which followed the global financial crisis (GFC) cannot be ruled out. Indeed, the words: economic depression are being mentioned, hence why we have witnessed so much large-scale government intervention around monetary and fiscal policies. Such interventions have reached GFC proportions and will inevitably go beyond that. We truly live in extraordinary times.
At Binary Capital we are following all events very very closely. The speed of the market falls has been breath-taking and highly significant. To witness investment markets fall by 10% in a day is unheard of. To see leading politicians unable to formulate policy from day to day is also unusual. We are living in decade defining times.
All this needs to be assessed in a clear and pragmatic manner. I know it is hard to stay calm and rational at this moment in time, but it is exactly these qualities that we will be remembered for in years to come. As investment markets become more irrational, the rational players will benefit and give clarity and guidance when much needed.
At Binary Capital, the short-term is just that, short. We like to take a long-term, patient view of the world and importantly the investment markets. The themes around globalisation, healthcare, technology, data and freedom are ever present and will only increase in importance once the pandemic leaves us – this year, next year.
We remain committed to working with our clients, working with potential clients and all our contacts and networks to navigate through such difficult decisions, such difficult times. We are responsible, real, rational investors. We take that responsibility and duty very seriously. Even against the background of the current market turmoil our portfolios have held up relatively well. Why is that? For all the reasons outlined above.
Whether you are an individual seeking advice around your investments, an IFA firm looking for the next generation of investment solutions or looking to work in true partnership with us, we want to listen to you. Please get in touch.
Keep well, keep safe.
Saftar Sarwar
Binary Capital Investment Management
Chief Investment Officer
What type of investor are you?
Look long-term for the best returns. That's our philosophy. Short-term noise will fall silent.
Private Investor - General Disclaimer
IMPORTANT INFORMATION - PLEASE READ
It is important that you read the contents of this notice carefully before accessing the binarycapital.co.uk website. This notice governs your access to and use of the website. By accessing the website you agree to accept the terms of this notice and the following terms of use. If you do not agree to abide by these, you must stop using this website immediately.
1. This website is provided by Binary Capital Investment Management Ltd (“BCIM”). BCIM is authorised and regulated for the conduct of financial service business by the Financial Conduct Authority.
2. BCIM tries to ensure that the information on the website is accurate and helpful, however, it cannot ultimately warrant the accuracy of any information contained on the website, particularly any information provided by third parties. BCIM cannot be held liable for any use or reliance you may make of or put on any information on the website except as specifically agreed with BCIM in writing. The website is provided on an “as is” and “as available” basis. BCIM do not make any express or implied representations or warranties in respect of the website and its contents (including, without limitation, warranties as to accuracy or completeness).
3. This website, and all information provided on it:
3.1. is solely intended for your private use;
3.2. is intended only for use by users domiciled in the United Kingdom, and is not for distribution to, or use by, any person or entity in any jurisdiction where such distribution or use would be contrary to any law or regulation or which would subject BCIM to any regulatory requirements in such jurisdiction;
3.3. is not directed at persons, and is not to be regarded as an offer to buy or sell or an invitation to buy or sell investments, securities or to accept deposits or to provide any other products or services in any jurisdiction, to any person to whom it is unlawful to make such an offer or solicitation; and
3.4. does not constitute investment advice on the merits or suitability of any investment product and no information contained within the website should be construed as such.
4. Please note that the value of investments and the income derived from them may fluctuate and you may not receive back the amount originally invested. Past performance is no guarantee of future performance. Currency movements may also affect the value of investments. The information on the website should not be relied upon in connection with any investment decision. The contents of this website should not be construed as legal, taxation or financial advice. If in doubt you should speak to your professional adviser.
5. Cookies. Cookies are small text files that help us make your experience on binarycapital.co.uk better. More information about how we use cookies can be found on our Privacy Policy. Although cookies are nothing new, we now need your consent to use cookies. If you don’t want us to use cookies, some parts of the site will not work. By using any part of the site you consent to the use of cookies. Alternatively, you can let us know whether you accept cookies by Accepting below.
6. We will never share your email address with another person or organisation. Please read our Privacy Policy.
By clicking ‘Accept’ you agree to be bound by the terms of this notice and the Terms of Use.
Financial Advisers Disclaimer
IMPORTANT INFORMATION - PLEASE READ
This page of the website is intended for UK professional advisers only. To qualify you must be registered with the Financial Conduct Authority. If you are not a professional adviser registered with the FCA please leave this page of the website by clicking ‘Decline’ below. This page of the website should not be used by retail clients.
Binary Capital Investment Management Ltd (“BCIM”) does not accept any liability whatsoever should a retail client ignore this warning.
NOTICE TO PROFESSIONAL ADVISERS
It is important that you read the contents of this notice carefully before accessing the professional advisers page (‘the page’). This notice governs your access to and use of the page. By accessing the page you agree to accept the terms of this notice having already accepted the terms of use when accessing the BCIM website.
If you do not agree to abide by the terms of this notice set out below and the terms of use accepted upon access to the BCIM website setting out further risk warnings and information, you must leave this page.
1. The Professional Advisers Page (‘the Page’) is provided by Binary Capital Investment Management Ltd (“BCIM”). BCIM is authorised and regulated for the conduct of financial service business by the Financial Conduct Authority registered number 507900.
2. BCIM tries to ensure that the information on the website is accurate and helpful, however, it cannot ultimately warrant the accuracy of any information contained on the Page, particularly any information provided by third parties. BCIM cannot be held liable for any use or reliance you may make of or put on any information on the Page except as specifically agreed with BCIM in writing. The website is provided on an “as is” and “as available” basis. BCIM do not make any express or implied representations or warranties in respect of the Page and its contents (including, without limitation, warranties as to accuracy or completeness).
3. This Page, and all information provided on it:
3.1. Is solely intended for your private use as a Professional Adviser registered with the FCA;
3.2. is intended only for use by users domiciled in the United Kingdom, and is not for distribution to, or use by, any person or entity in any jurisdiction where such distribution or use would be contrary to any law or regulation or which would subject BCIM to any regulatory requirements in such jurisdiction;
3.3. is not directed at persons, and is not to be regarded as an offer to buy or sell or an invitation to buy or sell investments, securities or to accept deposits or to provide any other products or services in any jurisdiction, to any person to whom it is unlawful to make such an offer or solicitation; and
3.4. does not constitute investment advice on the merits or suitability of any investment product and no information contained within the Page should be construed as such.
4. Past performance is no indication of future performance. The value of investments and the income from them is no guaranteed and can go down as well as up. Investors may not get back the value of their original investment.
5. In order to comply with any money laundering regulations and laws, additional documentation for identification purposes may be required by BCIM
6. In accordance with FCA regulations, all electronic communications and telephone calls between BCIM and its clients whether retail or professional are recorded and stored for at least 6 months. We will never share your email address with another person or organisation. Please read our Privacy Policy.
By clicking ‘Accept’ you agree to be bound as a Professional Adviser by the terms of this notice and the Terms of Use.