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

Investors must study what 'fear' means

clock • 4 min read

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...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Markets

How big an impact could global elections have on portfolio allocation in 2024?

How big an impact could global elections have on portfolio allocation in 2024?

US, UK and India main focuses

Investment Week
clock 19 February 2024 • 8 min read
Hotter than expected US inflation tempers Fed rate cut expectations

Hotter than expected US inflation tempers Fed rate cut expectations

Annual price growth falls to 3.1%

clock 13 February 2024 • 1 min read
Investors turn defensive in January as rate cut expectations change

Investors turn defensive in January as rate cut expectations change

State Street Risk Appetite index

clock 08 February 2024 • 1 min read
Trustpilot