Doug Cohen: Market Analysis and COVID-19 Recovery Scenarios with Bloomberg Radio


On March 19, 2020, Doug Cohen, Managing Director, Portfolio Management, spoke with Bloomberg Baystate Business radio to share his thoughts on what an economic recovery could look like, and what factors might come into play, given the current global health crisis.

Cohen notes that while “digesting the major moves we’ve had, you have to be humble enough to know what you don’t know and no one has a clear picture of how this plays out.” He continues to encourage diversified portfolios with an emphasis on cash for this kind of volatile equity market, but diversification in fixed income and other asset classes is valuable.

As for the outlook and recovery of COVID-19, Cohen notes that while “there is no playbook for this,” it may be possible to still see a V-Shaped recovery, pending increased evidence of containment. With the first day of no new cases reported in Wuhan, China, this can be seen as an encouraging data point that containment is possible. Cohen perceives that the situation has reached a critical point and if there is “evidence of a second derivative slowdown and an increase in the number of infections is starting to dissipate, you can start to see where there’s a little bit of light at the end of the tunnel. The market will react to that and anticipate that when we get to that point… it’s just a matter of how long it will be.”

The full segment is available here (22:21).