Toward the end of February 2020, equities and other risk assets sold off, and safe-haven assets rallied amid increasing concerns about the novel coronavirus. The virus, now known as SARS-CoV-2, is expected to spread further than was initially anticipated. Over the three trading sessions from February 21 through February 25, global equity markets fell by around 6% while gold increased by over 2%. 1 The US 10-year Treasury yield edged closer to the 1.3% mark, the lowest level ever recorded.
1 For more information on gold, please refer to our latest paper “Gold – You’re Indestructible,” available at https://www.mercer.com/our-thinking/wealth/gold-you-are-indestructible.html
For more insight on Mercer’s investment implications for the Coronavirus outbreak, download the report here.