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Coronavirus a wake-up call for investors

Phil discusses what the coronavirus means for highly valued shares
February 27, 2020

It is very difficult to accurately predict the future when it comes to the economy and the stock market. There are always optimists and pessimists out there but the general prevailing view tends to be that things will carry on as they are currently – at least in the short run.

A few months ago, no-one was talking about a virus that could wreak havoc with the global economy. Most of the focus was on how low interest rates would go and the fact that there was little alternative to shares for investors seeking a real return – a return above inflation – on their money.

This view holds up as long as profits do. Sustainability of profits is now the big focus of investors across the world. Some, including me, would argue that it is long overdue.

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