In John Hempton’s eyes, what is occurring in financial markets is not an economic problem that can be solved through central bank stimulus. It’s a virus problem, and as a virus problem, it can only be solved through scientific intervention such as vaccines. John believes that the measures taken by central banks may cause more harm than good and that over the next 4 weeks we will see COVID-19 tip its hand to show us the full extent of its impact. In this special episode of Inside the Rope, David joins John Hempton of Bronte Capital to discuss both the health and economic implications that Coronavirus may have on the world and financial markets. Bronte was one of a few global equity managers to profit in February through the addition of downside market protection, in a time when volatility was priced at less than a quarter of what it is now trading at. However, aside from the health implications and recent volatility in financial markets, John doesn’t think it changes much for investors that are sensibly invested. His recommendation to such investors, sit it out.
In this show, David interviews the leading minds in Wealth Management. David Clark is an experienced and respected Financial Services Professional. As a Partner and Advisor at Koda Capital, David advises some of Australia most successful families on Wealth Management. David is also a successful entrepreneur that has exited two financial services businesses. He is a director of the St Josephs College Foundation and sits on the investment committee, as well as being a founder of ZamBzee a software application development company.