The Day After #10 – Rethinking the macro and cross-asset research: what we have learned from the Covid-19 crisis

September 4, 2020

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:

  1. A fast-evolving macro financial environment.
  2. A common global ‘health’ shock affecting economies and spill-overs to the full spectrum of asset classes.
  3. A deep disconnect between macro fundamentals and markets.
  4. 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.
elementum dapibus sed mattis sit Curabitur eleifend Lorem quis,