Investors’ Flight To Safety

Investors’ Flight To Safety
March 2, 2020 David Mardell
Man in a mouth mask.

Will Coronavirus be the nemesis for investors in 2020?

Its only two months into the start of the financial year and we have already seen the bushfire crisis followed by floods and these two dramatic events are sure to affect local share markets and communities for a long time to come.

However, what was not foreseen was this unknown coronavirus that reared its head out of Hubei, China in December. This has certainly now placed all the worlds health authorities on high alert as everyone is trying to understand this epidemic and contain the spread of the virus around the world.

Over the last two weeks we have seen major corporations, including Apple disclose to the markets potential profit impacts to their bottom lines and the flow on affects have been staggering. Just this week alone, we have witnessed the biggest plunge in global stock markets since the financial crisis, amid rising fears of the impact on the world economy and the efforts to contain the virus.

As world markets tumble in the wake of the coronavirus epidemic and low growth expectations, there is a lot of uncertainty in the marketplace. This was very evident when global investors this week rushed to buy assets considered “safe havens” including government bonds and gold, sending the yield of the US Treasury bonds to the lowest level on record.

These economic reactions are commonly called, “flight to safety” and is a financial market phenomenon occurring when investors sell what they perceive to be higher-risk investments and purchase safer investments. And as we have seen, this is considered a sign of fear in the marketplace, as investors seek less risk in exchange for lower profits.

Taking a breath and resetting your investment strategy is never a bad plan especially when there is a lot of uncertainty in the short term.

Skyring has always maintained its view that we are the conservative portion of clients’ portfolios and the lever that delivers the consistent income for lifestyle outcomes for our clients.


Interested in earning 5.85%^p.a. paid monthly?

To start earning superior distributions of 5.85%^p.a. paid monthly, request your free information pack or talk to our Investor Relations team on 1300 737 274 about investing in the Skyring Fixed Income Fund.

You can get started with as little as $10,000. You’ll receive your returns within the first five days of every month, just like clockwork.

Download the PDS and Information Pack here. Click here for more details.

^Please note, past performance is not a reliable indicator of future performance



This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for any action or any service provided by the author.


Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

Did you hear?

our latest investment report is here.

To receive your copy, and so you never miss another update, offer, event or invitation, simply add your email below.

Subscribe to Download PDF

our latest investment report is here.

To download your PDF, and so you never miss another update, offer, event or invitation, simply add your email below.

Subscribe to download PDF

  • This field is for validation purposes and should be left unchanged.

Your privacy is important. We never sell or distribute your email.

Download your copy of the Skyring Fixed Income Fund
PDS & Information Kit

Simply fill out the form on the right to download the Fixed Income Fund Product Disclosure Statement and Information Kit.

The information will be sent to your email inbox.

We respect your email privacy.