ECONOMY | 05.28.2020
Coronavirus: financial analysis XI
Investors seem to be rectifying their catastrophic expectations of the consequences of the crisis, which would explain the market resurgence despite the macroeconomic data remaining very negative. Daniel Sancho, Head of Investments at MAPFRE Gestión Patrimonial, lists the reasons that might explain this behavior.
Market sentiment has improved, but Alberto Matellán, Chief Economist at MAPFRE Inversión, remains cautious. In an interview with Radio Intereconomía, he explains that now is the time to wager on a wide selection of companies, using a reliable analyst and manager to identify which companies will come out of this crisis on top.
Developing countries can’t count on the support of the European Central Bank and its “whatever it takes” mantra, nor the leeway provided by the Federal Reserve System. Some experts have proposed new solutions to confront the current situation. This is the case of Colombian economist Mauricio Cárdenas, who recently proposed that the IMF and other multilateral agencies create a financial vehicle to issue debt.
The Chief Economist of the ECB is the technical architect behind the policies announced to tackle the pandemic, with the multibillion-euro Pandemic Emergency Purchase Program (PEPP) standing out in particular. But his role has also been crucial in defending the ECB’s autonomy when it comes to decisions generating uncertainty, as seen following the German Court’s recent ruling on the above-mentioned quantitative easing program.
MAPFRE’s research department has published the fifth issue of Economics and Insurance Review, which deals with various topics that were the subjects of analysis in its most recent reports, including the composition of the investment portfolio of insurance companies before the COVID-19 pandemic and an analysis of the health systems of different countries.
Previous editions available here:
- Coronavirus: financial analysis X
- Coronavirus: financial analysis IX
- Coronavirus: financial analysis VIII
- Coronavirus: financial analysis VII
- Coronavirus: financial analysis VI
- Coronavirus: financial analysis V
- Coronavirus: financial analysis IV
- Coronavirus: financial analysis III (Spanish)
- Coronavirus: financial analysis II (Spanish)
- Coronavirus: financial analysis I (Spanish)