The market dynamics have shifted dramatically in the course of the past four weeks. In my previous writing, I outlined many of the issues related to the increased cost of liquidity and the extent to which investors of all stripes where extending themselves into lower quality securities. This powder keg of risk was lit by a global pandemic, and for good measure, an oil price war.

Many clients have asked me during our WebEx or phone call sessions in recent occasions how this compared to the Great Financial Crisis (GFC). In many respects the hallmarks of the recent market drawdown were the same. The paralysis of the credit markets, from supposedly ‘cash equivalent’ products to the lack of companies issuing new debt were all the signs witnessed previously. Credit and short-term financing once again were the canaries in the proverbial coal mine.

However, when I wrote about the difference this time around, the stark difference is the nature of the crisis and how it affects the real economy and the forced closure of many businesses. Consumer behaviour and the way business is conducted has fundamentally changed. It brings to the forefront our vulnerabilities, and the need to consider the once inconsiderable. The duration of the current situation therefore, will directly affect how profound the recession is going to be, and the effect it will have on all of us.

Another aspect present is the advent of Exchange-Traded funds (ETFs) in the current marketplace, as compared to 2008-2009. One of the elements that I witness in the course of the past several weeks was the price dislocation of many bond ETFs as a result of the scarcity of liquidity. I will write more about that in a subsequent post, as part of my commitment this year is in explaining and contextualising investment advice as well as offering an insight into the process my clients are a part of.

What is essential in times like these is to remember the importance of human ingenuity and that necessity is indeed the mother of all inventions. Biotech research institutes and companies are leveraging the immense technological advances we have made in the development of vaccines through molecular biology. Using artificial intelligence, advanced genetic techniques, and bringing together the best science will once again be crucial in mitigating the effect this virus will have. Therapeutics already undergoing clinical trials are well underway, and governments globally are fast-tracking processes typically quoted in years to months. We will find a way out.

It is therefore a crucial time to consider the investment advice you have been receiving – and weigh all the options you currently have. Determining your level of risk and appetite for opportunity, understanding your short and long term requirements are all part of the process. There are several strategies we can discuss in regards to your portfolio and estate plan that are actionable, and the preservation of your wealth at one of the most pivotal moments in modern human history.

Communicating with you through both thick and thin, and offering investment advice in a time of great uncertainty begins with understanding the role wealth plays in you and your family’s life. Now more than ever, consider how a professional with a personal approach can be empowering as you take back the reins of your financial future.