Last week could be characterised as an “orderly” repricing of equity markets to the consequences of COVID-19 disruptions. This week has seen second-order market dynamics, driving valuations down to levels which do not seem particularly rational anymore.
Are we back to a systemic crisis, the return of a global financial system teetering on the brink of collapse as it did back in 2008/2009? The answer is a firm and resounding ‘No!’.
This time the source of the stock market downdraft is not the financial system itself, but an external shock to global economic activity. Given such shocks happen far more frequently than banking crises and the resilience of the financial system is stronger following the financial crisis of 10 years ago, we see far less stress across the financial system overall.
Tatton Asset Management PLC (LON:TAM) offers a range of services to directly authorised financial advisers in the United Kingdom. The Company provides on-platform portfolio management, regulatory, compliance, and business consulting services.
