By Jukka Viljanmaa
Senior Investment Manager, TPT Wealth
The impact that the coronavirus COVID-19 outbreak will have on the global economy and financial markets is still barely predictable.
COVID-19 has already infected more people than SARS (2003) or Swine flu (2009-2010).
Apple Inc., Starbucks, and countless other businesses have temporarily closed stores and corporate offices in selected areas in China to avoid face-to-face contact, while travel bans are impacting global travel and tourism industries.
With China’s significance for global growth and now representing approximately 34% of the MSCI Emerging Markets Index, global equity markets tumbled and interest rates reduced in bond markets in the first week of February as investors reconsidered their allocations to equities.
In response, the Chinese Central Bank injected the equivalent of US$170 billion of liquidity into financial markets and announced a range of monetary and credit support measures.
Despite new infection case numbers starting to decline, equity and bond market volatility could potentially reappear as the economic impact of the virus plays out and Central Bank interventions cease.
With these uncertainties in mind, consider your investment portfolio and look at all alternative options available to you and your business that can help you achieve your financial goals. TPT Wealth’s At Call Fund and Income Funds offer a regular income stream for investors looking to reduce their exposure to volatile asset classes.
With a focus on short term interest rates and credit we aim at providing capital stability.
Visit tptwealth.com.au or contact us on 1300 138 044 for your investment or commercial lending needs.