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End of the bull market – governments bring out the big guns UPDATE 15-04-2020

The coronavirus crisis puts an end to years-long bull market

Stock markets are not immune and fall sharply worldwide. The past month we have seen a strong recovery, but since the beginning of this year losses of 15% to 25% and more have been suffered.

Bond markets have been shaken up too. Interest rates fall to record lows before rising again. Riskier bonds being offloaded.

The virus holds the key

Europe is in lockdown and the US takes radical measures.

The global economy is in for a very tough time.

Positive news: economic life in China is picking up again now that the virus seems to have passed its peak there. In Europe and the US strategies are being considered to reduce the lockdown.

The big guns are being brought out around the world

Central banks are opening the monetary tap again.

Enormous government support packages are in the pipeline.

Tom Mermuys, Senior Investment Strategist KBC Asset Management

We are opting for a more cautious bias in our share selection. Safe short-term government bonds provide stabilization.

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Editing ended on 15 April 2020. This document is a publication of KBC Asset Management NV (KBC AM). The information in it can be changed without notice and offers no guarantee for the future. Nothing in this document may be reproduced without the prior, express, written consent of KBC AM. This information is governed by the laws of Belgium and is subject to the exclusive jurisdiction of its courts.

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