The Swiss bank Julius Baer has been, since the beginning of the coronavirus crisis, probably the most optimistic firm regarding this situation, its duration and its impact. And it continues like this … Christian Gattiker, its chief economist, has long insisted that the crisis will pass sooner than expected, that investment strategy must be kept firm and that the economy will withstand the pull. And this Tuesday affects the same idea.
“The stressful days are behind us. (…) It is to be hoped that investors will take advantage of this once-in-a-lifetime opportunity to reconsider what is important to them,” he said in a report collected by Bolsamanía. “The crisis has reached a point where investors have to reconfirm or redefine their priorities. Reconfirming means maintaining or even increasing their positions.” Add.
Gattiker believes that now “slow” days will come after the storm, which, however, should not make investors forget the lesson learned. “First of all, the question is whether clear investment priorities were established (during the crisis) based on a clear investment plan. Otherwise, the need to put them in writing is more evident now than ever. (…) If there was a plan, the question is whether it served its purpose or needs to be revised. Would you apply the same risk load now? If so, then would you have to hold firm or even increase (positions) after the recent price drop of assets. I’m afraid “short-termism” is the biggest obstacle again, “explains this analyst.
Christian Gattiker acknowledges that in recent conversations with clients they have been debating “endlessly” about whether they have already hit rock bottom in the markets. “It does not seem that this is the bottom,” he says, although it will come, he adds. “This is also a valuable lesson to be learned from the past few weeks. What we stand for is to stay on course, put some money to work and stick to investment principles. Investors panicked in an unprecedented way ( …). Please do not miss this opportunity to reflect “, he recommends.