Financial markets have experienced an incredible amount of volatility thus far in 2020. Government efforts to contain the spread of the coronavirus resulted in a sudden stop of global economic activity—one of the deepest and sharpest recessions in modern history—and a broad selloff across risk assets. Government bond yields collapsed, benefitting from “safe haven” demand. Policymakers responded quickly with massive monetary and fiscal support measures that restored confidence and fueled a strong market rally off the March lows.
We hope that you find this information helpful. Please don’t hesitate to contact us if you have questions or would like to discuss further.