Wealthsmiths Winter 2020

Page 7

Investing

Investing in a pandemic There are challenges and opportunities for investors as they navigate the markets during the Covid-19 crisis, writes Andrew Strange

P

erhaps the most recent example of a pandemic on the current scale is the Spanish Flu that began in 1918 and few people alive have ever faced an investment landscape like the one that is apparent today. The Covid-19 crisis has brought about fundamental changes, from the enforced closure of businesses and the

‘rule of six’, to expansive government intervention in financial markets. In March, the FTSE 100 recorded its biggest quarterly fall since Black Monday more than 30 years ago, with shares in the UK’s biggest companies plunging 25% as lockdown halted economic activity. There were record

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