The year 2020 began with positive sentiment. 2019 ended with equity indices reaching all-time peaks and value saw a strong comeback in Q4 2019 given a significant rotation which already began in September. Equities continued on their upward path until the end of February 2020, shrugging off tensions between the US and Iran and the ongoing spread of the COVID-19 virus. However, within a short period of time, two extreme situations began pressuring capital markets globally. COVID-19 was classified as pandemic by WHO and Russia and Saudi Arabia engaged into a price war on crude. Both led to significant declines in the market.

While COVID-19 became public in late December 2019, equity markets only responded after the third week of February. Given rising infections in South Korea, Italy and Iran, on February 22 & 23, uncertainty became more severe and stock markets collapsed rapidly. On February 24, the Dow Jones Industrial Index registered its steepest loss in points in history, while the German DAX dropped from 13,789 on February 19, to 11,858 on March 2. As of March 16, the DAX stands at 8,742, having lost almost 37% since tensions increased.

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