Yesterday the UK followed much of Europe and the US into a painful lock-down of its people and economy, yet today stock markets rally 5-6% by early afternoon – how can these go together?
In this investment update, we discuss how governments’ fiscal support measures for the economy and the central banks’ monetary commitment to provide sufficient capital for bond markets mean capital markets no longer seem to assume a lasting collapse of the global economy. We then explain why central banks’ actions are both suitable and effective to prevent collateral damage from the COVID-19 restrictions driving the global financial systems towards another financial crisis.
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.
