In this week’s video insight, Andrew Macken reviews the recent changes to our global portfolios. Our concerns surrounding how COVID-19 will impact the US in particular have significantly grown from what they once were. This translates into a much more significant – and relatively longer lasting – downside risk in US aggregate demand than we had previously assessed. Though we certainly hope we are wrong, we now believe we were overestimating the preparedness of many western governments and are therefore facing the possibility of a crisis-in-confidence in these governments.

“Humans tends to be averse to change. It can be surprising, unsettling – even scary.  While I realise we may attract criticism for changing our thinking and our positions, we have done so on the basis that we believe it is the right thing to do for the people who have entrusted their capital to us.” Andrew Macken