Have equities passed the Covid-19 test?

stock market

The Covid-19 crisis has tested international reserves portfolios worldwide. For institutions that adopted equities over the past few decades, especially after the global financial crisis, this has represented an additional challenge. The great lockdown has been the first major test of financial as well as institutional resilience of equities as a reserves asset.

During this time, most reserve managers have shied away from de-risking, preserving their asset allocations and have instead counted

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