An update on what Seneca IM are doing and some information around market behaviour in incidents similar to the Coronavirus situation.
If you look historically at epidemics and stock market performance then the market does tend to overreact in the short term. Since 1980, there have been 12 major incidents (HIV, SARS, Swine Flu, Bird Flu, Zika etc). Our research shows that in the majority of cases, markets are higher after six months following the incident. However, this outbreak is significantly more serious than most in terms of its impact, having already caused a major fall in world markets, whilst the impact on the real economy continues to grow.
Global markets have already been materially impacted and the environment will continue to be volatile over the coming months. This will present both short term risk but also opportunity to long term investors.
We are closely monitoring all of our investments as the situation evolves. Our approach to navigating periods of heightened volatility is to stay calm and focus on the long term investment horizon.
From an operational perspective, we are keeping up-to-date with the advice from the NHS and Public Health England to safeguard the health of our team and have arrangements in place to ensure the continuity of our business.
Source for all information: First Trust Global Portfolios Limited.
Past performance should not be seen as a guide to future performance. The outlook expressed in this communication represents the views of Gary Moglione at the time of preparation and are not necessarily those of Seneca Investment Managers Limited. His views may be subject to change and should not be interpreted as investment advice. Whilst Seneca Investment Managers has used all reasonable efforts to ensure the accuracy of the information contained in this communication, we cannot guarantee the reliability, completeness or accuracy of the content. This document is provided for the purpose of information only. Seneca Investment Managers Limited is authorised and regulated by the Financial Conduct Authority and is registered in England No. 4325961 with its registered office at Tenth Floor, Horton House, Exchange Flags, Liverpool, L2 3YL. FP20 070