It goes without saying that March saw an unprecedented level of volatility as financial markets struggled to come to terms with the impact of the global pandemic COVID 19 virus. As mentioned in our recent “Coronavirus Conundrum” report, the quandary for markets is exactly how to value securities in an environment where the global economy has been deliberately shut down as a necessary step to slow the spread of the virus and stay within the critical care capacity of the health care system. In the short term, the variables that usually drive markets such as earnings forecasts and economic data are effectively meaningless as economic conditions are contrived rather than organic. Cash and bond rates have been manipulated lower by central bank policy, which has encompassed interest rate cuts, massive quantitative easing and liquidity support programs. To backstop the economy during the period of shutdown, governments have introduced broad ranging support measures for individuals and businesses, which are designed to maintain solvency rather than stimulate demand. In Australia, the aggregate of fiscal support packages announced so far are equivalent to an incredible 16% of GDP, which will increase our debt to GDP ratio from 28% to 40% which, although uncomfortably high, is much better than the US and other developed countries.