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Did the Pandemic Change How Fund Managers Think About Risk?

They have varied in their response to COVID-19.

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When the novel coronavirus pandemic hit the United States in March 2020, it upended society and roiled financial markets in unprecedented ways. After much of the country was shut down, the resulting disruption caused the sharpest economic contraction in decades. The stock market fell more than 30% in a matter of weeks, but then rebounded quickly thanks to massive fiscal and monetary stimulus, making it the shortest bear market on record. The announcement of effective coronavirus vaccines in late 2020 caused many of the stocks hit hardest by the pandemic to rally sharply, but that rally fizzled several months later when it became apparent the reopening of society might not be as quick or as seamless as many expected.

David Kathman does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.