Advisors exhibited behaviors consistent with longer-term trends across the board. Allocation to cash remained unchanged this week at 4.09%.
The COVID-19 shock is accelerating structural trends in inequality, globalization, macro policy and sustainability. This is fundamentally reshaping the investment landscape and will be key to investor outcomes.
Europe’s policy response to the virus shock was slow to get going – but an impressive array of fiscal and monetary measures is getting into place to bridge the economy through the shock.
Allocations to cash were reduced by 21% this past week, the most significant drop in cash levels since crisis began.
Cash increased marginally from 5.11% to 5.25% last week. Cash is sustaining at roughly two times the average since early April. Advisors remained risk averse again this week favoring less risky assets, which is a continuation of long-term investing behavior.
Public markets were at the center of market action as risk assets sold off amid the spreading pandemic and then rebounded amid an overwhelming policy response.
Macroeconomic policy has gone through a needed revolution to cushion the coronavirus shock. It essentially aims to “go direct” and is blurring fiscal and monetary policies.
Last week was a marked change for advisors with investment activity shifting back to fixed income categories.
In a normal presidential election year, June headlines would be filled with speculation about who the White House challenger will pick as a running mate