Reviews of Financial Markets in the GFC and Covid-19

Evidence and Lessons for Financial Assets’ Allocation in Post Covid-19 Pandemic Era

DOI

10.2991/aebmr.k.220603.172How to use a DOI?

Keywords

Review; GFC; Covid; Investment decision; Asset allocation

Abstract

The Global Financial Crisis (GFC) and Covid showed quantities of similarities and differences in terms of financial market and financial assets, but these characteristics occurred under multi-factors. Current research mostly focuses on single profiles of both crises and interprets them in a siloed way, but such statement fails to explain the inherent connections of different components in both crises, thus failing to serve investors in a macro way. By stating and analyzing financial changes from the perspective of comprehensive review, this paper will explore the common misconducts prior to both crises and reveal the inevitability of financial crisis. Subsequently, this paper will present data of financial assets’ returns in respective crisis and compare them to unveil the effectiveness of traditional safe havens and remind investors of alternative instruments. In fact, most safe havens will not work as perfect shelters in case of crisis and investors have to change their investment decisions. Ultimately, this paper will refer to corporate and government remedy plans to cope with the GFC and reveal the rationale of R&D and governmental support. At the same time, this paper will expose current soaring inflation and warn investors of their investment positions. In conclusion, quasi-cash and illiquid instruments will gain popularity in the future crisis.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Guangliang Chai
PY  - 2022
DA  - 2022/07/01
TI  - Reviews of Financial Markets in the GFC and Covid-19
BT  - Proceedings of the 2022 2nd International Conference on Enterprise Management and Economic Development (ICEMED 2022)
PB  - Atlantis Press
SP  - 1061
EP  - 1068
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220603.172
DO  - 10.2991/aebmr.k.220603.172
ID  - Chai2022
ER  -