The importance of focusing on the long term during a pandemic

FROM being almost unknown at the start of the year, Covid-19, now a pandemic, has prompted severe social and economic concerns globally. People are understandably frightened because this is a new disease, which has a real human cost. Our first thoughts are with the people who have fallen ill and their families. There has been significant disruption to the daily personal and business lives of an increasing number of people around the world.

While this disease is new, there have been pandemics and other crises in the past, and markets have survived them all. These crises are invariably accompanied by heightened investment uncertainty, which then manifests itself in market volatility. As an organisation, we have been studying the history of pandemics and the pattern that they typically follow. There tend to be hot spots and flare-ups that last a while but then dissolve. Eventually, I believe the spread of the virus will slow down and people will get back to normal, as will markets.

What does the Covid-19 outbreak mean for the global economy?