On 9 December, FCLTGlobal hosted a webinar for the launch of the 2021 edition of FCLTCompass, our annual report and interactive dashboard that analyzes 10+ years of financial data to reveal important insights regarding the state of worldwide capital markets.

During this virtual event, our panel of experts debate the findings of our new report, which pinpoints critical changes in capital allocation trends over the past year, corporate and investor resilience, and the dynamic between interconnected markets and disconnected responses to COVID-19.

FCLTGlobal was joined in conversation by:  

Participants emphasized that:

1.    Governments responded to the COVID-19 crisis with well coordinated monetary and fiscal action. The exogenous nature of the pandemic enabled governments across the globe to respond with more integrated stimulus programs relative to previous crises that had been driven by moral hazard.

2.     Braced by this strong policy support, companies were able to stay the course on their long term strategies. With strong signals that governments would step in to support workers, companies sustained their R&D and CapEx spend, with many doubling down on strategic investments as the crisis accelerated trends like digitalization.

3.     Looking ahead, a downturn could trigger widespread short term behavior. Savers who entered the market during the last decade’s bull run have never experienced a downturn and risk overreacting if real market volatility returns.

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