Asset management and the COVID-19 (coronavirus) crisis
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Asset management and the COVID-19 (coronavirus) crisis
Just a couple of weeks ago, the consensus about COVID-19 was that it would have minimal impact on healthy adults, who could generally continue going about their business. This week, however, one country after another has started urging businesses to temporarily close and allow employees to work from home if possible.
This new virus has indeed had a significant global impact, and concerns are growing by the minute. Practically all aspects of our lives are already affected by this pandemic. Investors are rattled and equity markets are reeling from the COVID scare all over the world. People who have a range of investments are now asking: “Is this pandemic going to negatively affect our investments? What does wealth management mean in this time of fear and uncertainty?”
The good news is that financial experts and wealth management professionals like the Global Asset Management company in South Korea can help you protect your investments in difficult times like the one we currently find ourselves in. Among other things, the company helps people manage retirement funds, contingency funds, savings and income, and investments.
The impact of COVID-19 on the financial management industry may not be as much of a priority as ensuring the public’s health and well-being, but it is still important for investors to be guided accordingly. You’d naturally want to know that your investments are safe even in these trying times. These are probably the top concerns in your mind right now as an investor:
- What will the impact on the global economy be?
It is understandable that you would be concerned about how profound the pandemic’s global economic impact will be, considering the fact that the number of cases continues to rise across the globe. - Will it have a negative impact on Asia’s economic growth?
Investors in the Asian markets would naturally wonder how the region’s economic growth will be affected, as that may also make a difference on how your investments will fare. To date, China has not resumed full production capacity, and this could raise the whole Asian region’s downside risk to growth. - Will there be more monetary easing from Asian central banks?
When the US and China were embroiled in a trade row in 2019, central banks in Asia actively rolled out policy easing, and it is only logical for you to wonder if they are going to do the same in this time of crisis.
Whatever the answers are to the above questions, it may be worth your while to consider the following:
Goals-based Planning
Economic shocks like the one caused by COVID-19 typically showcase how powerful goals-based planning can be. Having a goals-based plan can effectively protect your investments from short-term economic shocks, as it limits the impact of any short-term economic shock on your investments.
Short-term Asset Allocation
You may want to consider moving your assets to less risky short-term investments. You could avoid downside risk by investing in things like bonds and 10-year notes, and the timing is perfect right now for you to do this. When the pandemic is finally contained and the market bounces back, you could then capitalise on market gains by going back to investing in equities.
Long-term Investments
Perhaps the best thing about long-term investments is that they are generally safe from short-term economic reactions to such tragedies as the recent COVID-19 pandemic. Just like other economic downturns that have happened in the past, the fears caused by the pandemic are expected to gradually die down in the coming months. With proper guidance from a reliable asset management expert, you could benefit from a measured long-term investment approach even amidst the most trying of global challenges.
When you make the choice of availing of the services of a global asset management company, you get the benefit of having someone to guide you all the way, even if you have the misfortune of being directly impacted by the coronavirus or any other tragedy. Having someone to talk to about your assets and how best to manage them during difficult times can make a huge difference in the results you see with regard to your investments.
Financial advisors are there to help you become more confident in your financial stability and effectively navigate through uncertain periods such as the one the world is going through right now. They can help you avoid making financial mistakes as a result of instinctive reactions that may just lead to lifetime regrets. Additionally, these experts can keep you up-to-date with the latest market trends and help you decide which strategies to include in your portfolio.
So far, COVID-19 has affected global financial markets in ways that are similar to the effects of other economic downturns that have occurred throughout human history. However, the world is yet to find out what the full impacts of this pandemic are going to be. To this day, we are still unsure as to whether the virus has peaked in terms of diagnosed cases or not, but as long as you receive proper guidance from wealth management professionals, you can be sure your assets will be safe despite the outbreak.
