Cash is indeed king

TheStar Thu, Mar 26, 2020 09:50am - 4 years View Original


Economic action: The Petronas Twin Towers stand next to commercial buildings in Kuala Lumpur. All in, we need a package that is worth some RM130bil to address the economic fallout from Covid-19 to return to the normal economic path within the next six months. — Bloomberg

VERY rarely have there been times when so many tumultuous events took place at the same time.

So far, what do we have?

We have equity markets that are deep into bear territories, we saw a carnage in the oil market, we have seen the huge volatility in the fixed-income market, while the dollar, as measured by the Dollar Index, is near its highest level in 17 years. Cryptos are down heavily, while gold has lost some of its glitter after recent gains and nobody talks about start-ups as they have probably been left high and dry.

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