Pandemics, panics and perspectives: Investor psychology amid the Covid-19 crisis

Investors must study what 'fear' means

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Henning Stein of Invesco
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Henning Stein of Invesco

It might seem glib to caution against panic when entire nations have been quarantined, supermarket shelves have been stripped bare and phrases such as "self-isolation" and "social distancing" have entered everyday language.

For asset managers and their clients, though, "keep calm and carry on" is usually a dependable mantra. This is why the old adage that time in the markets beats timing the markets has been so widely deployed in recent weeks. The basic message to investors is that crises come and go and that patience, not knee-jerk alarm, is likely to be rewarded over the longer term. Asset managers traditionally support this narrative with historical data - and, sure enough, we will do exactly that in due course. Sustainable investing: The strong get stronger Yet an industry that customarily c...

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