The Covid-19 pandemic has reminded us how hard it can be to predict even a few months ahead, with very few commentators having speculated at the start of the year the extreme events that have unfolded since.
Yet, however unclear the current situation, governments, central banks and businesses are desperately trying to understand the scale of what’s happened and plan for the months, years and decades ahead. Many decisions they make will be wrong: there are simply too many ‘unknown unknowns’.
A key challenge currently is the residual dislocation of financial markets following the initial impact of the crisis. At Royal London Asset Management (RLAM), our view is that the current environment continues to provide buying opportunities for longer-term investors, for example, in the high yield market.