Euro Pacific Bank

Euro Pacific Advisors’ Portfolio Commentary: Stock Markets Continue to Slide

Published: March 17, 2020

euro pacific advisors fund manager portfolio commentary
 

Relevant Strategies

  • Moderate
  • Balanced (and International Balanced)
  • Growth
  • Aggressive Growth (and International Growth)
  • Gold & Precious Metals
  • Natural Resources
  • Peter Schiff

Our Commentary

With lockdowns increasingly being imposed across the globe, data for the current quarter could indicate a slowdown in economic activity greater than that in the ‘Great Financial Crisis’ of late 2008.

The future trajectory of the COVID virus is of course open to wide variation and consequently the economic impact of the consequences still very hard to judge.

What is certain, is that Central Banks have been quick and decisive in offering monetary policy support while fiscal support will certainly be forthcoming.

However, even the US Fed last Friday cutting interest rates to near zero and announcing an increase of $700bn in bond purchases, as part of a package of global coordinated measures, has not stemmed the on-going decline in equity markets.

Credit spreads have been widening and US high yield is vulnerable.

Portfolio Actions

Our strategy remains focused on broad, global diversification across asset classes together with a tactical overlay.

The exposure to gold and platinum held up well but has succumbed to profit taking in recent days as investors have sought to cover losses made elsewhere.

Historically, the time for a full equity market recovery from a decline of this magnitude averages 22 months. Sentiment remains weak and volatility very much elevated.

We await some encouraging news regarding the COVID virus before redeploying cash and will provide you more commentary from our fund managers as we receive them.

Regards,

Euro Pacific Advisors Management Team