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Question: You say you are a contrarian investor. If we look at your top holdings in the Invesco Asian Fund (UK), such as Taiwan Semiconductor Manufacturing (TSMC) and Samsung Electronics, they don’t seem very contrarian ideas. Have your philosophy and process changed?

In anticipation of a resumption of economic growth, the UK equity market has rapidly recovered over the past two months. Jonathan Brown and Robin West caution that it could be two-three years, however, before the economy returns to full health. Given their preference for quality businesses with strong balance sheets, they believe that it’s never been more important to maintain their focus on businesses with the ability to do well even in more difficult times.

When we talk about market ‘episodes,’ we often mean periods where investors appear to give up on their own long term beliefs due to what prices are doing right now.

It is common to see correlated declines across range of apparently unrelated asset classes during these episodes, which was exactly what we saw in March. Such periods of heightened correlation can be highly revealing of the changing beliefs embedded in markets and how behavioural forces might be playing a role.

With lockdown continuing and the tone of news flow deteriorating, it can be hard to reconcile the recent bounce in equity markets with how we may feel personally.

In the latest Invesco Podcast Ben Gutteridge, Director of Model Portfolio Services, speaks to Thomas Moore, The lead fund manager on Invesco’s High Yield Bond fund.

The Chinese market has held up remarkably well since this crisis began. In fact, it’s one of the best performing equity markets globally, which is perhaps surprising given that the virus originated there and, indeed, the Chinese economy has always been perceived to be a proxy for global economic growth.

In a few short months – a term, hitherto only commonplace in the scientific community, has become firmly entrenched in our collective dialogue. The rapid spread of information (and misinformation) related to the coronavirus, so…

The coronavirus outbreak has replaced trade wars as the dark storm bearing on markets, sending jitters across global financial markets amid fears of a hit to the global economy.