At Baggette Asset Management Limited, we continuously evaluate the market to identify trends. COVID-19 was a “Black Swan” (unpredictable) event that took us, and the rest of the markets by surprise. We are currently looking to identify potential investment opportunities in anticipation of markets returning to a more stable state. 

One area which we have identified, both now and in earlier communications, is the shift towards more environmentally friendly investing. With the world being on “lock down”, research has concluded that carbon monoxide levels have seen a reduction of nearly 50% when compared with last year. Emissions from other areas have also seen sharp falls.

Further evidence of the positive environmental impact which we are seeing is shown below in satellite imagery from China, where the impact has arguably been the greatest:

Source: NASA
Source: NASA

Lastly, for our investors who have been to Venice in recent years, it is high unlikely that water clarity was at the level shown below! The sediment on the bottom is being disturbed far less due to the sharp decrease in boat traffic, which is leading to clearer waters.

Source: Manuel Silvestri – Reuters

What opportunities do we think this will create within our Mazarin range? We believe that there will now be an even stronger shift towards environmentally friendly and conservative investments. We are currently conducting a large research project to establish how best to take advantage of what we perceive to be a very strong reaction by the financial markets to the threat of COVID-19.