Market Update

Market correction and Fed action create potential opportunity in high quality bonds

Market correction and Fed action create potential opportunity in high quality bonds

Turbulent market conditions have forced the Fed to flex its muscles and this has created some possible opportunities.

Economic uncertainty continues to grow as the coronavirus spreads globally, and more of the US and world population curtail economic activity to try to mitigate the spread of the virus. We are suffering a sudden stop in growth and the outlook for returning to work is not clear.

Unless unforeseen improvements in treatment or prevention are found, the near-term correction in growth is likely to persist. But the first step to growth recovery is capping the spread of the virus, and we look for the peak in infections in the US as a key marker on this path.

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Investment risks

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