Greg Davis: You know, when you think about the response that we've seen already from the central banks around the globe, it's been pretty significant. If you look at the U.S. Fed, they've thrown pretty much everything at it, including the kitchen sink.
Joe Davis: Yeah.
Greg: I’d love you get your perspective of what that means and how that's going to play out. What do you think that's going to do to financial conditions and things of that nature.
Joe: Well, I think that is positive, right? And I think that's what's a stark difference from, I think 2008 and 2009 Greg. he financial crisis where policymakers not just in the United States, but other countries, I think, took some time, with all the respect, to find their footing. Now the nature of this shock has been so significant that I think it both underscores the severity of the situation, but also the policy makers are responding that they are not immune to those needs or issues. So, I think we will continue to see monetary policy efforts. What I've seen to date has not surprised me. In fact, it’s something you and I talked about for some time, so that is positive to provide liquidity to the markets and then additional fiscal policy measures. I think the one thing that governments around the world are starting to appreciate is that you do whatever it takes at times. When you're facing a tremendous shortfall in demand, much of which many businesses, quite frankly, didn't ask for, right? It's been, it's been necessitated. So I think that's been positive to date. That does not mean we will not have a recession. A recession in that sense is highly likely, but it means that the length of the recession and the amount that we fall as a global economy that can be blunted, in part because of the rapidity of the response.
For more information about Vanguard funds, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it before investing.
All investing is subject to risk, including possible loss of principal. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.
Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer’s ability to make payments.
Diversification does not ensure a profit or protect against a loss.
VIGM, S.A. de C.V. Asesor en Inversiones Independiente (“Vanguard Mexico”) registration number: 30119-001-(14831)-19/09/2018. The registration of Vanguard Mexico before the Comisión Nacional Bancaria y de Valores (“CNBV”) as an Asesor en Inversiones Independiente is not a certification of Vanguard Mexico’s compliance with regulation applicable to Advisory Investment Services (Servicios de Inversión Asesorados) nor a certification on the accuracy of the information provided herein. The supervision scope of the CNBV is limited to Advisory Investment Services only and not all services provided by Vanguard Mexico.
This material is solely for informational purposes and does not constitute an offer or solicitation to sell or a solicitation of an offer to buy any security, nor shall any such shares be offered or sold to any person, in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction. Reliance upon information in this material is at the sole discretion of the reader.
Securities information provided in this document must be reviewed together with the offering information of each of the securities which may be found on Vanguard’s website: www.vanguardmexico.com/web/cf/mexicoinstitutional/en/home or www.vanguard.com
Vanguard Mexico may recommend products of The Vanguard Group Inc. and its affiliates and such affiliates and their clients may maintain positions in the securities recommended by Vanguard Mexico.
ETF Shares can be bought and sold only through a broker and cannot be redeemed with the issuing fund other than in very large aggregations. Investing in ETFs entails stockbroker commission and a bid-offer spread which should be considered fully before investing. The market price of ETF Shares may be more or less than net asset value.
All investments are subject to risk, including the possible loss of the money you invest. Investments in bond funds are subject to interest rate, credit, and inflation risk. Governmental backing of securities apply only to the underlying securities and does not prevent share-price fluctuations. High-yield bonds generally have medium- and lower-range credit quality ratings and are therefore subject to a higher level of credit risk than bonds with higher credit quality ratings.
There is no guarantee that any forecasts made will come to pass. Past performance is no guarantee of future results.
Prices of mid- and small-cap stocks often fluctuate more than those of large-company stocks. Funds that concentrate on a relatively narrow market sector face the risk of higher share-price volatility. Stocks of companies are subject to national and regional political and economic risks and to the risk of currency fluctuations, these risks are especially high in emerging markets. Changes in exchange rates may have an adverse effect on the value, price or income of a fund.
The information contained in this material derived from third-party sources is deemed reliable, however Vanguard Mexico and The Vanguard Group Inc. are not responsible and do not guarantee the completeness or accuracy of such information.
This document should not be considered as an investment recommendation, a recommendation can only be provided by Vanguard Mexico upon completion of the relevant profiling and legal processes.
This document is for educational purposes only and does not take into consideration your background and specific circumstances nor any other investment profiling circumstances that could be material for taking an investment decision. We recommend to obtain professional advice based on your individual circumstances before taking an investment decision.