Aspirations Insights : Investment Market Update March 2020

As we move into the thick of the Covid-19 outbreak globally, we are closely monitoring the duration and depth of this pandemic. At this stage, the virus is spreading faster than governments can move to quash it, and stimulus measures – though welcome and necessary – are not yet being palpably felt by markets. We are seeing crashes comparable to the GFC, and a crushing halt to one of the longest share market bull runs in history. The economic impacts of Covid-19 will be with us for at least another six, perhaps 12, months. There will be many more announcements along the way, some good news and some bad. The economic numbers are likely to be awful and will cause large falls when they emerge. However, in between times, we will get major rallies as investors reassess the value on offer. There is a long time to go before the medical crisis is over, and the market will react to bad news. On the other hand, the falls have already been quite significant and much bad news has been discounted. Only time will tell. What we do know is that share market valuations are very attractive. The chances of long-term investors earning returns well in excess of Term Deposits / Cash over the next five years are very, very high.
Please click link to view our latest update: Aspirations Insights March 2020 (PDF)