COVID-19 Market & Investment Update

As you are all aware the outbreak of COVID-19 is causing the world to slowly shut down with cities and now countries being forced into total lock down and quarantine, this having a huge impact on the global investment markets.

Since the peak of the Australian share market on the 20th Feb 2020 the All Ordinaries Index has fallen by 27% and is currently down another 5% in trade this morning while the AUD has fallen from $0.67 USD to $0.62 USD (-7.4%). The Dow Jones for the same period has fallen 20.5% and the S&P 500 -19.6%.

All clients of Meridian Wealth have been conservatively invested over the past 12 months meaning the average movement in your portfolios since the 20th Feb 2020 is between -3% to -7% depending on your investment profile. Our preference to hold a high percentage of cash and defensive assets as well as having a good long-term position in physical Gold is helping with the preservation of your investments.

We have also maintained a short position (BBOZ) within all portfolios which acts as insurance in falling markets. This combined with the defensive approach employed over the past 12 months has been most beneficial for you and has you well placed to take advantage of this market downturn.

Our view is that global markets will remain volatile for the foreseeable future and we are maintaining all current portfolio positions. Once we believe things have stabilised, we will look to re-balance your portfolios in order to take advantage of the value that will start to become present and things start to return to normal.

During these times, we are always available to discuss any concerns or worries that you may have or even help out your family and friends who may be seeking to benefit from receiving some sound financial advice during these times.