Covid-19 accelerated markets’ entropy and risk takers will evolve their investment approaches
Crises create disruption and Covid-19 is no exception, bringing new complexities, new opportunities and new risks to the investment landscape.
From our research angle, we realised that the pandemic triggered:
- A fast-evolving macro financial environment.
- A common global ‘health’ shock affecting economies and spill-overs to the full spectrum of asset classes.
- A deep disconnect between macro fundamentals and markets.
- A larger role for central authorities in market functioning. Monetary policies in particular have been overwhelming asset classes’ specific drivers, blurring market correlations and inducing (dangerous) mispricing.