Coronavirus: financial analysis XII

COVID-19 tests the resilience of healthcare systems

Healthcare systems in certain countries such as Spain and Italy, which, according to the IEHS—an indicator developed by MAPFRE Economics—are ranked among the top ten healthcare systems in the world, have not proven sufficient in evading the greatest impact of the pandemic. In this article, Ricardo González, Director of Analysis, Sectoral Research and Regulation at MAPFRE Economics, discusses the reasons why this is the case.

Valuing assets: risk and uncertainty

Luis García, a MAPFRE AM manager, outlines the key elements for valuing companies and making investment decisions under the current circumstances. The goal is to reduce uncertainty through analysis, to control risk by avoiding overpaying, and to buy businesses that are significantly more valuable than the price we pay.

“There are reasons for continued optimism in the stock market”

Optimism has returned to the markets, and according to Alberto Matellán, Chief Economist at MAPFRE Inversión, this is set to continue for some time. As he explains in an interview with Radio Intereconomía, this turnaround is due to three factors: abundant liquidity, better economic data than had been forecasted, and reduced political risk in Europe and potential bankruptcies.

“ESG funds have proven to be more profitable and less volatile in the time of coronavirus”

The crisis has triggered market volatility, with historic blows to all assets. Nevertheless, one category of funds has performed better — those that place emphasis on socially responsible investment or follow ESG criteria. In an online event organized by Rankia, Eduardo Ripollés, Institutional Sales Director at MAPFRE AM, offers insight with regard to MAPFRE AM Good Governance.

Catharsis as part of advancing toward recovery

The crisis will result in a kind of catharsis in asset management. According to Patrick Nielsen, Assistant General Director of MAPFRE AM, and César Gimeno, portfolio manager for American equity and multi-asset equity, retaining a comprehensive professional profile is needed now more than ever, not only in terms of economic and financial analysis but also understanding societal dynamics and being capable of dealing with a greater wealth of information.