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Since my last update on Friday, we have seen the introduction of the near full lockdown in the UK on Monday. Yesterday markets across the globe rallied, and as I write today European and American markets are mostly all up after news that Congress and the Trump administration had agreed a $2 trillion fiscal stimulus package.  Sterling also strengthened and the dollar weakened on this news.  Further government action continues to have the intended effect by providing support to the global economy.

Lothar Mentel, who’s views on the markets and global economy I have forwarded to you previously, released his latest update yesterday, and I thought you may be interested to hear this.

Why have stock markets appeared to rally on the lock-down?

Yesterday the UK followed much of Europe and the US into a painful lock-down of its people and economy, yet today stock markets rally 5-6% by early afternoon – how can these go together?

In this investment update, we discuss how governments’ fiscal support measures for the economy and the central banks’ monetary commitment to provide sufficient capital for bond markets mean capital markets no longer seem to assume a lasting collapse of the global economy. We then explain why central banks’ actions are both suitable and effective to prevent collateral damage from the COVID-19 restrictions driving the global financial systems towards another financial crisis.

Please paste the below into your browser to watch:

If you wish to speak to your financial adviser directly about any aspect of your portfolio, you will find their contact details on the About us page. We have accounts in place with Zoom and as such are able to carry out face-to-face discussions with you using this technology, in place of physical meetings.  Our contingency arrangements across our offices are now in place, but please be assured we are working hard to deliver the best outcomes for you, keep you updated and guide you through this unsettling period.

To contact us by telephone, please call:

Ashford office: 01233 646 666 

Hastings office: 01424 457 080 

Kind regards,
Mark Eaton

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