As the first quarter of the year ended, the impact of the COVID-19 pandemic on risk markets almost seemed non-existent. Over March we saw US markets return to all-time highs, further upgrades to the global economic outlook, additional US stimulus packages and central banks reaffirming monetary policy and inflation expectations.
2020 was an extraordinary year on many fronts – from natural disasters, both in Australia and abroad, to the impacts of the COVID-19 pandemic, the Black Lives Matter movement and the spotlight on the destruction of Indigenous cultural heritage. From an investment perspective, the challenges of 2020 have reinforced the link between social, environmental and financial outcomes.
This podcast explores how this calendar year has seen global equities drop 35.8% from their pre-pandemic high but have since recovered 52.4%, a drop from the February high of 2.4%. The BT Asset Allocation team examine the draw-down and subsequent ‘recovery’ through a sector lens.