A lot of what Helen Thomas, CFA, CEO of Blonde Money is doing at the moment feels a bit like grief counselling. She is predicting that the economic consequences of the coronavirus will lead us into the biggest recession of our lifetime.
“You have got to get over the denial and come to the reality of where we are,” says Thomas speaking to Will Goodhart, Chief Executive of CFA UK.
Thomas is predicting a U shaped recession for the economy, with a very long time at the bottom. “Businesses will go bust, people will lose their jobs and it will be dreadful. It will change the landscape of the economy globally from here on end,” she says. “It is significantly worse than the financial crisis.”
Support for globalisation
One thing the COVID-19 pandemic is revealing points out Thomas is just how much we depend on one another in our global supply chains.
“It might actually really drive home, what does it mean to be against the establishment,” she says. “What does it mean to be against globalisation? Can we now see perhaps some benefits to it, but that is obviously a longer-term implication.”
In the short-term, the big question her clients are asking her is ‘when they should buy?’ She says: “I think the question should be how do I sell everything right now and position myself defensively for return of capital rather than return on capital.”
This article was recorded on Tuesday 24th March over Zoom.