It scarcely needs stating that the Covid-19 pandemic has been incredibly challenging for investors. National lockdowns, negative oil prices and gilt yields, record-breaking economic collapses quickly followed by unmatched growth.
The crisis has triggered all kinds of events that were recently unimaginable. The swing in market sentiment, driven by the unprecedented actions from central banks, has likewise been remarkable.
The Covid-19 pandemic has been a true black swan event that has proved a great test for risk management strategies. It is too soon to declare the long-term winners and losers, given that we are not yet through the crisis and there are many market distortions that have yet to unwind. Nevertheless, based on their performance during both the downturn and the recovery, it appears likely that ‘sustainable’ investment strategies will emerge particularly strongly.