Since the last time I wrote, financial markets seem to have returned to a calmer state, certainly when compared to the moves in March.

Having said this, there is nothing calm about what is going on:

  • We now have confirmation that we are facing the greatest economic contraction since the Great Depression (1929-1933): in the past 3 weeks alone, more jobs have been lost than were created in the last 10 years.
  • The human race is facing the worse pandemic since the Spanish Flu (As a Spaniard, I should point out that the 1918 pandemic is forever associated with Spain, but this strain of H1-N1 was discovered earlier in Germany and France. However, like the response to first cases of COVID-19 in Wuhan, China, First World War censors buried or underplayed those reports).
  • Crude Oil price experienced the steepest decline since David Beaty first discovered it at his home in Warren, Pennsylvania back in 1875. For the first time ever, WTI Oil traded at negative prices.
  • The greatest central bank/government intervention of all time has just started (more on this later in this note).


Read the whole note here.


For further information or to speak to a member of staff please give us  a call on +44 (0) 207 396 3200 or alternatively e-mail

Disclaimer: the value of investments and any income from them can go down as well as up and investors may not receive back their original investment amount. This communication is for information purposes only. It is not intended as a personal recommendation of particular financial instruments or strategies and it does not provide individually tailored investment advice. This document provides the views of the London & capital investment team examining the fundamental background, economic outlook and possible effect on asset markets. This document is not an invitation to subscribe and is by way of information only. Nothing contained herein constitutes investment, legal, tax or other advice nor is it to be solely relied on in making an investment or other decision. If you are considering investing, you should consult your London & capital adviser. The views expressed herein are those at the time of publication and are subject to change. Correct at time of going to press.
London and capital asset management limited is authorised and regulated by the financial conduct authority, 12 endeavour square, London, e20 1jn. Firm reference number 143286. Registered in England and wales, company number 02112588. © London and capital asset management limited. All rights reserved. London and capital wealth advisers limited is authorised and regulated by the UK financial conduct authority (firm reference number 120776) and by the U.S. securities and exchange commission of 100 f street, ne Washington, dc 20549, with sec firm reference number 801-63787. Registered in England and wales, company number 02080604. © London and capital wealth advisers limited. All rights reserved.

Related Content