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Coronavirus updates, Keep Calm and Carry On, week 5…

This week, our 5th blog during the Coronavirus (COVID-19) crisis, we will revisit some of the economic measures and scenarios highlighted in our opening blogs, to see if things are now any clearer? In addition, we will explore the potential path for economic recovery, however with an increased focus on the implications for your wealth.

For the benefit of those new to our blog, The Wealth Consultant is a free to use digital wealth platform helping clients to achieve financial Peace of Mind, a tall order in the current environment. However, it is at unprecedented times like these, and as some may argue not seen since WW2, that we must keep our head, or risk losing our mind, we must “Keep Calm and Carry On”, in so far as that is possible.

In our opening blog, we explored three economic scenarios laid out by Charles Stanley. It would now seem that the ‘best case’ has passed us by, which suggested an early peak in virus numbers, allowing a return to normal conditions. It is still too early to say whether we meet the ‘base case’ or ‘worst case’, at present it is hanging in the balance. Despite snippets of more positive news emerging, their latest feature, published this week, states that any return to normality will be slow and phased, and that ‘Business as normal’ is unlikely to be seen any time soon. Read here

Whilst the global recession induced by COVID-19 may only be months old, direct central bank intervention, identified as critical to preventing lasting economic damage, and some encouraging signs of recovery from China have sparked the debate of a ‘v-shaped’ versus a ‘u-shaped’ recovery in economies and markets. JPMorgan have written a report exploring what the recovery from COVID-19 recession will look like. Read here

What does all this mean for investing and your wealth? The popular Chinese proverb that says “The best time to plant a tree was 20 years ago. The second best time is now”, is perhaps appropriate when considering what you should do. Schroders Personal Wealth have written an article “How to make time pay – TIME IS MONEY”, which supports this notion, in the context of historic ‘Black Swan Events’. It highlights that we all need a financial plan, but that plan requires the ‘expenditure’ of time! Read here

Our tip for your financial health this week comes from Wealthify, Turn ‘Stay at Home’ into ‘Save at Home’. This follows on from our blog last week that focused on the importance and benefit of financial advice and investing, and an introduction to ‘robo advice’. Wealthify’s recent blog suggests those fortunate enough to be working from home, make the most of their extra money, saved owing to the eradication of regular expenses such as commuting, going to pubs and restaurants with friends. Read Here

In next week’s blog we will explore how the pandemic may have changed our attitudes towards investing, by accelerating megatrends and demand for ESG products, as we increasingly look to do the right things for our planet, appropriate given World Earth Day was this week!.

The Wealth Consultant is here to help you asses your current situation, to hold your hand through these testing times, and to give you peace of mind. If needs be, and at the appropriate time, we can introduce you to alternative advisers/managers who may be better placed to serve your needs.

Thank you for reading, I hope you found this helpful. Please do get in touch with any questions or comments. 

Keep well, Keep Calm and Carry On.