{"id":165550,"date":"2020-02-26T10:05:07","date_gmt":"2020-02-26T15:05:07","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=165550"},"modified":"2020-02-26T08:41:44","modified_gmt":"2020-02-26T13:41:44","slug":"coronavirus-could-push-the-world-to-the-brink-of-a-global-recession-investors-warned","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/02\/coronavirus-could-push-the-world-to-the-brink-of-a-global-recession-investors-warned\/","title":{"rendered":"Coronavirus could push the world to the brink of a global recession, investors warned"},"content":{"rendered":"
February 26, 2020<\/div>
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By George Prior<\/strong><\/p>\n

Coronavirus and heightening geopolitical and trade tensions can be expected to drive the world to the brink of a global recession this year. Investors must take action sooner rather than later to build and safeguard their wealth.<\/p>\n

The stark warning from Nigel Green, founder and CEO of deVere Group, one of the world\u2019s largest independent financial services and advisory organizations, comes as Asian-Pacific, European stocks and U.S. futures fell on Wednesday as the global market sell-off triggered by concerns over the impact of the coronavirus outbreak grew.<\/p>\n

Mr Green says: \u201cInvestors have largely been caught off-guard by the serious and far-reaching economic consequence of the coronavirus.<\/p>\n

\u201cThis, despite major multinational organisations already lowering their profit guidances, and many more likely to do so in coming weeks. Clearly, this will hit global supply chains, economies across the world and ultimately government coffers too.<\/p>\n

\u201cHowever, it does seem that this week the world is waking up to the reality of the situation as the containment of coronavirus hasn\u2019t yet materialised and confirmed cases soar in different countries.<\/p>

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\u201cUntil such time as governments pump liquidity into the markets and coronavirus cases peak, markets will be jittery triggering sell-offs.\u201d<\/p>\n

Earlier this week, Nigel Green noted: \u201cIn addition, coronavirus has struck at a time when major economies, including Japan, Germany, India and Hong Kong are already facing a serious downturn.\u201d<\/p>\n

He continues: \u201cIt doesn\u2019t end there. Investors also need to consider the impact of the U.S. presidential election, the tensions between Iran and the U.S. and how oil prices will be hit if these intensify, and perhaps most significantly there\u2019s the simmering trade war between the U.S. and China \u2013 the world\u2019s two largest economies.<\/p>\n

\u201cChina\u2019s current economic slowdown will reduce the country\u2019s ability to buy $200bn more U.S. goods, as promised in the Phase One trade deal. And that was the \u2018easy\u2019 bit.<\/p>\n

\u201cPhase Two is more about the U.S. trying to limit China\u2019s tech ambitions and it has been reported that Beijing is unwilling to negotiate on many of these issues, and instead would play for time.\u201d<\/p>\n

The deVere CEO goes on to add: \u201cThe combination of these headwinds is likely to dampen business confidence and investment, profits, and consumer demand throughout the rest of this year.<\/p>\n

\u201cTogether they could push the world to the brink of a global recession this year. This would be severe because central banks are running out of weapons to see off the threats.\u201d<\/p>\n

Mr Green concludes: \u201cWhilst I am confident that we\u2019ll narrowly avoid a global recession in 2020, no-one can accurately predict the future \u2013 as we have seen with coronavirus, which markets wrongly assumed would be limited to mainly China.<\/p>\n

\u201cTherefore, in the current volatile environment, investors – including myself – will be revising their portfolios and drip-feeding new money into the market to take advantage of the opportunities whilst reducing risk at the same time.\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 Coronavirus and heightening geopolitical and trade tensions can be expected to drive the world to the brink of a global recession this year. Investors must take action sooner rather than later to build and safeguard their wealth. The stark warning from Nigel Green, founder and CEO of deVere Group, one of the […]<\/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-165550","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/165550","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=165550"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/165550\/revisions"}],"predecessor-version":[{"id":165551,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/165550\/revisions\/165551"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=165550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=165550"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=165550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}