It’s understandable to worry about the coronavirus pandemic and the impending global recession. Although the past is not an indication of the future, historically,
the equity market has overcome each temporary setback caused by recessions and disease outbreaks, as shown in this chart of S&P 500 Index performance
since 1945. Regardless of short-term market movements, investors should consider sticking to their long-term investment strategies.
Previous recessions and epidemics caused only temporary setbacks for US stocks
S&P 500 Index (1945-2020)
Source: FactSet. Data as at 31 March 2020. Past performance is no guarantee of future results. It is not possible to invest directly in an index.
Growth in China set to outlast the pandemic and trade wars
Despite the impact of the coronavirus pandemic, and continuing tensions with the US, China remains on course to become the world’s largest economy by 2030. This could represent the coming decade’s most transformative development in global financial markets – and a major opportunity for investors.
While it has been a challenging year so far, we expect China to resume its growth trajectory and become the world’s largest economy by 2030
The previously export-led Chinese economy is shifting its focus to higher-value, tech-driven sectors, with growth fuelled by the country’s burgeoning middle class
Improved accessibility, governance and transparency have increased the appeal of Chinese A-shares to foreign investors
Many indices underplay China’s growth story; a lack of exposure to China could mean benchmark investors miss out
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