Along with the horrible human consequences, the coronavirus pandemic is having a huge impact on the way we live, and as a result, investment markets. This note provides a simple Q&A for most of the main issues from an economic & investment perspective.
Significant government support is essential to enable parts of the economy to successfully hibernate;
This will be financed by borrowing and is affordable, given Australia’s relatively low public debt and low borrowing rates;
Central bank support to keep financial markets functioning properly is also essential and quantitative easing is part of this; and
We are more likely to see a U-shaped recovery than a V or L.
Click here to read more