Gibraltar Chronicle June 2020

Our latest article on the stock market, as published in the Gibraltar Chronicle.

Market Commentary June 2020

Stocks have staged a remarkable rebound over the past several weeks, despite dismal unemployment readings and declining profit expectations. Investor optimism appears to come in several forms: that job losses will be temporary and return quickly once lockdown restrictions are eased; that a relatively quick breakthrough on the health care front will occur to combat the virus through treatments or vaccines; and that monetary and fiscal stimulus will keep consumers and businesses afloat until the economy recovers. Another few things could be fuelling recent market psychology – a “worst-is-over” mentality that is bringing in substantial money from the sidelines; a “no-place-to-go-but-stocks” approach given record-low 10-year yields; and a “fear-of-missing-out” thinking that has investors worried about lagging performance.

Gibraltar Chronicle May 2020

Our latest article on the stock market, as published in the Gibraltar Chronicle.

Market Commentary May 2020

Will we ever get back to normal? COVID-19 is not just the worst pandemic in 100 years, but also the first pandemic of the information age. It also reflects a new kind of thinking, that it is worth stopping the global economy in order to minimise deaths. Perhaps the hyper-awareness wrought by social media in the digital age is why global leaders stopped the economy. The first steps on the long walk back from the pandemic have barely begun. And the likelihood is that the world we return to will be changed in fundamental ways.

Gibraltar Chronicle April 2020

Our latest article on the stock market, as published in the Gibraltar Chronicle.

Market Commentary April 2020

The losses from this pandemic have been sudden, shocking and real with a global recession now an almost certainty. The depth and length of that recession is contingent on multiple factors, including the fiscal policy response from governments and the monetary response from central banks; the success of stay-at-home initiatives in flattening the curve; medical advances in treatments and vaccines; and the potential seasonality of the virus. It is worth remembering that the economy was strong heading into the pandemic. Interest rates were low and the banks, which provide necessary liquidity, had passed stress tests predicated on worse scenarios. People have shown time and again that they do recover from even unthinkable crises. That innate trait will be tested severely this time, but we will come through.

Coronavirus Update

As living and working conditions evolve due to the Coronavirus outbreak, we would like to reassure our clients of GAM’s current situation.

Our office is fully operational, and our focus remains as ever on maintaining service levels. In addition to our suite at the World Trade Center, we have a business continuity office located at Ocean Spa Plaza, which fully replicates our systems. Also, we have the ability for all employees to work remotely from home. This may be required for those who need to self-isolate, as well as those at high risk or whose family members are at higher risk. We only ask that clients do not visit our office in person whilst it prohibited to do so.

Gibraltar Chronicle March 2020

Our latest article on the stock market, as published in the Gibraltar Chronicle.

Market Commentary March 2020

Have you seen that sci-fi movie in which the nations of earth are going about their usual business of trying to exterminate one another, until alien ships fill the skies, and then we all pull together like a team to crush the bug-like monsters? The coronavirus is that alien invader, and its presence has eliminated all talk of trade wars. The trouble is, we are only part way through this movie, and the bug-like monsters are winning all the early battles. With over 100,000 reported cases worldwide and more than 3,000 deaths, the mortality rate is higher than that for seasonal flu. Fortunately, the rate of infection appears to be slowing in China about two months after the virus was first identified. The fervid hope is that COVID-19 retains its relatively low lethality and is contained and eliminated before it mutates into something worse.

Gibraltar Chronicle February 2020

Our latest article on the stock market, as published in the Gibraltar Chronicle.