Covid-19 crisis: Six lessons for investors

Ideal case study to illustrate market efficiency

clock • 5 min read

The Covid-19 induced market crash offers several lessons for investors. Some are reminders of perennial investment pitfalls, while others indicate evolving market dynamics that could help guide investor focus in the coming decade.

The pandemic has provided an ideal case study to illustrate market efficiency, puncture common myths and test various popular hypotheses. Below are the top six lessons for investors following the crash:   1. Do not try to predict the market For the past few years, market commentators have been predicting the end of the bull market that began after the financial crisis in March 2009 and eventually ended in March 2020; a record 11-year run. Throughout this period, there have been hundreds of well-articulated research reports arguing that the bull market was long in the tooth and an...

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