The long weekend on Australia Day now feels like a lifetime ago. At that time there were only 400 cases of coronavirus, all of which were in a distant place called “Wuhan”. While the Australians plunged into a much-needed long weekend, Damien Klassen released a podcast on Livewire highlighting the prospect of a “Coronavirus hangover”
“Our current investment thesis is that an external shock could be a catastrophe for the already fragile Australian markets, and corona virus could very well be that shock.”
In just 9 weeks, these 400 cases exploded to over 400,000 cases and nearly 20,000 deaths worldwide, resulting in economic disruptions that decimated markets around the world and triggered extreme volatility.
Since Damien was so early to call it and respond to it and switch from stocks to cash and bonds, I asked him to do a special video interview with us to examine his considerations and discuss how things are going could develop from here.
While Livewire had already switched to remote work, I was able to do one last shoot in the Melbourne office before we went up the drawbridge. Damien kindly came in and shared his thoughts on the following topics, following advice on social distancing:
- How bad could it be for Australia?
- Why did you switch to cash?
- How does it work from here?
- How could the banks be doing?
- What is the best and worst case for residential property?
- What shows that it’s time to buy?
- Which sectors will look good for recovery?
- What will you buy when it’s time?
Below is the full interview with Damien.
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