Lockdown might be easing throughout the country, but it has done significant damage to the global economy and our economic future looks bleak. As we come out of the coronavirus pandemic, a recession seems inevitable, but questions about how long it will last and how deep it will be remain.
The global economic impact of COVID-19
The Organisation for Economic Co-operation and Development (OECD) has recently revealed that the United Kingdom’s economy could be one of the worst-hit of the leading nations and has already fallen by 11.5% this year. The OECD has also said that if the virus hits a second peak in the UK, the economy could drop by a further 14%.
Every industry has been affected by the unprecedented financial impact of the coronavirus pandemic, whether it’s directly, such as airlines, hotels and travel companies, or as a knock-on effect, such as the financial, healthcare or technology services.
Anthony Srom’s approach to investing in the wake of the pandemic
While the country’s economic future remains uncertain, Anthony Srom of Fidelity Asia Pacific Opportunities has decided to put this to one side and focus solely on the selection of stocks. Srom has proven his ability to locate the right stocks in the past regardless of the state of the wider economy, and so remains hopeful for the future.
Srom is known for adopting a high conviction method of investing for his Asian equity fund. His best ideas are honed within the catalogue of resources he has to hand at Fidelity and chooses to compare his own interpretation of the valuation of a company’s share price to what’s being said by the market.
His fund is in possession of up to 35 businesses, and when this figure is exceeded, he adopts a one-in-one-out policy. Srom might run a smaller portfolio, but he aims to reduce its potential volatility by ensuring that his fund remains diverse.
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