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COVID-19 – An update – 24th March 2020

24th March 2020

COVID-19 – An update – 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

Email: saftar.sarwar@binarycapital.co.uk

By making an investment, your capital is at risk. The value of your investment depends on market fluctuations outside of our control and you may get back less than you invest. Past performance is no indicator of future performance.