This too shall pass

ALASDAIR McKINNON:

McKINNON has run global investment trust Scottish since 2015 and has been an investment manager for more than 18 years. The trust has 36 years of annual dividend increases and over the past five years has registered a small loss of 0.3 per cent.

HE SAYS: ‘Stock markets might not be front of mind during a human tragedy like this, but the dramatic moves in recent weeks have no doubt been very unsettling for many investors.

When investors recover from the shock of a sudden downturn, it’s natural to ask what next? It’s not much fun being invested during such episodes and we cannot be certain how significant the impact will be. But we do know that, eventually, it will pass. The sell-off will create attractive opportunities amid the indiscriminate selling.

It is important to position in anticipation of changing conditions. We increased exposure to investments with resilient revenues and downsized parts of the portfolio that are more economically sensitive.

In the months ahead, we will be looking out for signs that confidence is starting to improve. Key will be finding the economic cure, as well as the medical cure, to this crisis.’