{"id":165407,"date":"2020-02-24T08:45:42","date_gmt":"2020-02-24T13:45:42","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=165407"},"modified":"2020-02-24T07:08:52","modified_gmt":"2020-02-24T12:08:52","slug":"coronavirus-triggered-market-correction-could-hit-complacent-investors","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/02\/coronavirus-triggered-market-correction-could-hit-complacent-investors\/","title":{"rendered":"Coronavirus-triggered market correction could hit complacent investors"},"content":{"rendered":"
February 24, 2020<\/div>
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By George Prior<\/strong><\/p>\n

Investors remain complacent about an imminent Coronavirus-triggered market correction of up to 10 per cent, warns the CEO of one of the world\u2019s largest independent financial advisory organizations.<\/p>\n

The warning from deVere Group\u2019s chief executive and founder, Nigel Green, comes as global equities registered losses on Monday following a surge in cases in Italy, Iran and South Korea over the weekend, and as the first cases are confirmed in Kuwait, Bahrain and Afghanistan.<\/p>\n

Mr Green comments: \u201cGlobal financial markets retreated on Monday as they reacted to the coronavirus headlines over the weekend. But it is likely that they will quickly rebound, as they have consistently done in recent weeks.<\/p>\n

\u201cIndeed, stocks keep on reaching record highs.<\/p>\n

\u201cThis is because many investors remain complacent about the far-reaching impact of coronavirus, which is continuing to spread \u2013 and a faster pace. This will inevitably hit financial markets and investors\u2019 complacency leaves many wide open to nasty surprises.\u201d<\/p>

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He continues: \u201cMajor global companies, especially those with heavy exposure to the Chinese economy, are lowering profit guidances due to the outbreak. This will have a knock-on effect across international supply chains and throughout economies.\u00a0 But is the message being heard by investors?<\/p>\n

\u201cIn addition, coronavirus has struck at a time when major economies, including Japan, Germany, India and Hong Kong are facing a downturn due to other factors such as the U.S.-China trade dispute and political protestors, which could hit the world economy.\u201d<\/p>\n

The deVere CEO goes on to add: \u201cUntil such time as governments pump liquidity into the markets and coronavirus cases peak, a near-term correction – of up to 10 per cent – is increasingly likely.<\/p>\n

\u201cWe are hoping for a V-shaped recovery, but our current view is that it will be U-shaped.<\/p>\n

\u201cAgainst this backdrop and with the ongoing uncertainty over the direction of stocks and other risk assets, multi-asset portfolios might be favoured by global investors, given that they offer diversification of risk as well as of return.\u201d<\/p>\n

Nigel Green concludes with a warning: \u201cGlobal markets are at high valuations and the impact of the coronavirus on profits appears largely underestimated.<\/p>\n

\u201cIn general terms, stocks have hardly been deterred by the coronavirus outbreak.\u00a0 This complacency is concerning.<\/p>\n

\u201cInvestors need to ensure that their portfolios are coronavirus-proofed as cases jump and a market correction looks more likely.\u201d<\/p>\n

About:<\/strong><\/p>\n

deVere Group is one of the world\u2019s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.\u00a0 It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior Investors remain complacent about an imminent Coronavirus-triggered market correction of up to 10 per cent, warns the CEO of one of the world\u2019s largest independent financial advisory organizations. The warning from deVere Group\u2019s chief executive and founder, Nigel Green, comes as global equities registered losses on Monday following a surge in cases […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-165407","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/165407","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=165407"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/165407\/revisions"}],"predecessor-version":[{"id":165408,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/165407\/revisions\/165408"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=165407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=165407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=165407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}