The Australia Day long weekend feels like a lifetime ago now. Back then, there were just 400 cases of Coronavirus, all of which were in some far off place called 'Wuhan'. While Australians were easing into a well-needed long weekend, Damien Klassen published a podcast on Livewire flagging the prospect of a ‘Market hangover from Coronavirus’: saying that
“Our current investment thesis is that an external shock could spell disaster for the already fragile Australian markets, and Coronavirus could very well end up being that shock”.
In just 9 weeks, those 400 cases have exploded to over 400,000 cases and nearly 20,000 deaths globally, leading to economic disruptions that have decimated markets worldwide and unleashed extreme levels of volatility.
With Damien being so early to call it and also act on it, making the switch from equities to cash and bonds, I asked him to join us for a special video interview to explore his reasoning and to discuss how things may unfold from here.
While Livewire had already switched to remote working, I was able to get one last shoot lined up in the Melbourne office before the we pulled up the drawbridge. Damien kindly came in and - following social distancing advice - shared his thoughts with us on the following topics:
- How bad could it get for Australia?
- Why did you move to cash?
- How does it play out from here?
- How might the banks fare?
- What’s the best and worst-case for residential property?
- What will show it’s time to buy?
- What sectors will look good for the recovery?
- What will you buy when it’s time..?
Watch below for the full interview with Damien.
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Probably the most impressive manager I have listened to in a long time.
A sound grasp of the path of COVID-19 and finance/economics. A rare ability in these days of old world fractured economics.
Agree with James C, most impressive.
A very good interview, thanks. Any chance you can include all such interviews on your podcast, or make them accessible somehow as a podcast?
... one of the best and very informative interview... thumb up
Great interview. Its amazing how obvious things seem in hindsight. I would love to hear a separate podcast on gold by Damien. I am reading very different views on it at the moment.