Amid the increasingly sobering economic projections and single issue news coverage, it is easy to become blinkered.
The economic ramifications of the pandemic remain difficult to predict, and while others indulge the temptation to opine on the possible outcomes, we believe that it is more important than ever for us to focus in on the micro level and take each company on a case by case measure.
Whatever grapheme the recovery of the global economy takes (V, U, L or W), we know for sure that the impacts will be dramatically different across different sectors, and particularly at the specific company level.
In times of stockmarket stress investors often forget this, perhaps understandably. As a result, pricing becomes less efficient and attractive opportunities arise.
By definition, these only become clear with hindsight. It is our strong contention that many such opportunities exist in the UK stockmarket today, and that diligent company analysis will be rewarded.
There is a growing chance that this challenging and uncertain time will hasten structural trends we had already foreseen, accelerating behavioural changes and highlighting the dramatic differentials between company operating models.
Beneficiaries are demand-pull e-commerce companies such as Boohoo, video gaming companies such as Nintendo and Frontier Developments, and online platform businesses such MoneySupermarket and Just Eat.
As consumers and economies emerge from financial distress, there will inevitably be opportunities for companies that have sufficient balance sheet strength to capitalise by investing ahead of their competitors.
Many firms have already tapped equity markets for additional funding. Those able to use this for growth rather than simply balance sheet repair, may reap the rewards in the medium term.
We certainly do not claim to have all the answers, and it is too early to draw definitive conclusions, but we remain confident that a focus on structural winners with low financial leverage will prove a successful strategy.
Benji Dawes is co-fund manager of Premier UK Growth fund and Premier Ethical fund
• Strongly capitalised companies will benefit doubly, if they use their resources to gain market share
• UK SMID cap remains overlooked and there are opportunities for the diligent, active investor
• Prolonged economic slowdown is not priced into risk assets
• Government debt-to-GDP ratio is likely to rise to levels not seen since the mid-1940s