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US equity losses catching up with Europe

Us equitiesUS equity losses almost caught up with those in Europe, falling by 31% in the month to March 23rd, according to Bfinance Research.

In the same time period, Chinese equities fell by 17%, significantly less than their global counterparts.

According to Bfinance, the relative “winners” during the current coronavirus crisis include companies with lower levels of debt and “asset-light” business models, such as software firms with less exposure to complex global supply chains.

Minimum volatility global equity lost 28% in the month to mid-March, while global quality equity lost 27%, as markets continued to find themselves in turmoil due to the crisis sparked by the coronavirus outbreak.

Active managers have been doing fairly well in many equity and bond sectors relative to their indices, the firm said.

Mathias Neidert, head of public markets and author of the report, said: “Today’s key challenge and concern, beyond the ‘known unknown’ of coronavirus’ long-term impact on the economy, is liquidity. While the current environment may present some interesting value opportunities in both equities and bonds, implementation is proving extremely problematic.”

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