17 Jun How worried should investors be about a “second wave” of coronavirus cases?
Key Points:
- A serious second wave of coronavirus cases in major developed countries is the biggest risk facing equity markets, and one investors will need to watch closely.
- However, provided any second wave is relatively mild in terms of pressure on health systems and deaths, its unlikely to cause the economic and investment market havoc seen a few months ago.
- As such, our base case remains that the pullback in shares over the last week is part of a correction in a broader rising trend, rather than the start of another big leg down.