At the end of February, the global economy was strong, and we were expecting a good year for investments. Out of nowhere, COVID-19 changed all that.
At the end of March Shares around the world tumbled, with the UK’s own FTSE share index losing one third of its value, pre COVID. Since that point, however, markets have been slowly rising once again.
Just as COVID-19 created the share fall, solving the COVID-19 problem will cause markets to rise.
The virus now appears to be under control in Europe and the US, apart from the southern states of America.
The US is stalling but with recent increases in the effectiveness of treatments, and the move to online spending, this is less of an economic impact than a health impact.
Economies around the world are slowly opening although measures such as face masks make the position far from normal.
China is controlling infections, although the validity of data from China is always questioned.
Reports from personnel in China confirm that China is back to normal in terms of production and is effectively managing any outbreaks, such as the recent Beijing outbreak, by an aggressive track and tracing system.
Only cinema, concerts and large sporting events are still in lockdown. Other countries in the region are not fairing as well – Japan – due to a lack of track and tracing system and India due to the high population density in Delhi and Bangalore.
Gradually as the fear of the virus subsides, we are expecting staggered growth in the markets with an expectation that any COVID investment losses will be recovered by the end of the year and the year may even be positive.
INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM, TAXATION ARE SUBJECT TO CHANGE.
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