Local and international markets have marked time in recent weeks as investors wait to see how the coronavirus outbreak will develop and what its ultimate impact will be.
On the plus side, with supportive economic policies put in place and preventative measures such as lockdowns and social distancing, it is plausible that we are at or near the low point of the global economic cycle. On the downside, there is no certainty in what happens next, and even countries like Australia, which has been effective in controlling COVID-19, remain hostage to recurring outbreaks. Although uncertainty remains high, the best scenario is that the Australian economy will recover from the September quarter onwards. But even if everything goes to plan, the economy is unlikely to return to a pre-COVID-19 level of business activity until late 2021 or early 2022. Morgans step through the equity market implications this month and explore the outlook for Iron Ore – one of the few segments of the market that have weathered the storm better than most.
Read more in Morgans monthly Investment Watch Update
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