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Adrian Saville on the investment cure for COVID-19
This week markets have seen declines last seen during the 2008 global financial crisis as the coronavirus, oil price slump and travel bans have sent economies and stocks into a frenzy. Joining CNBC Africa to unpack the investment cure for COVID-19 is Adrian Saville, CEO of Cannon Asset Managers.
Fri, 13 Mar 2020 11:04:16 GMT
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AI Generated Summary
- Distinguishing between risk and uncertainty: Saville highlights the distinction between quantifiable risk and unpredictable uncertainty in investment strategy, emphasizing the need for diversification as a defense against unforeseen events.
- Lessons from previous financial crises: Drawing from his extensive experience in navigating market crises, Saville discusses the unique impacts of COVID-19 on global markets and the importance of tailoring investment portfolios to diverse risk sources.
- The power of diversification: Saville underscores the concept of diversification as a 'free lunch' that offers protection and long-term growth potential by shielding portfolios from extreme market fluctuations.
The global financial markets have been experiencing significant declines reminiscent of the 2008 financial crisis due to the combined impact of the coronavirus pandemic, oil price volatility, and travel bans. In a recent interview with CNBC Africa, Adrian Saville, CEO of Cannon Asset Managers, shared insights on navigating this unprecedented uncertainty in the investment landscape. Saville emphasized the critical distinction between risk and uncertainty in investment strategy. While risk can be quantified and managed through diversification to an extent, uncertainty, or the unknown factors that can suddenly impact markets, poses a different challenge. The COVID-19 outbreak and its ripple effects on various industries have highlighted the importance of diversification as a shield against uncertainty. Saville outlined key strategies for managing risk and optimizing investment portfolios during these turbulent times. As investors brace for continued market volatility, diversification emerges as a key defense mechanism to mitigate unforeseen risks and capitalize on long-term growth prospects.
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