Markets are extremely nervous and with Coronavirus uncertainty have largely overreacted
Yann Murciano, chief executive of BLEND Network believes that the current market sell-off is only partly due to fears surrounding Coronavirus.
Murciano outlines that the market sell-off is more a result “of that fact that we are in the very late stage of the cycle and have witnessed the longest equities bull run in history.
“Given this, markets are extremely nervous and with Coronavirus uncertainty have largely overreacted".
Looking at the short-term, Murciano believes that we should expect to see some disruption and continued sell offs, however he outlines that this should be reversed and lead to a rebound as the virus eases or is controlled.
Murciano highlights that investors should be looking at fixed-return and less-risky alternative investments options.
With a number of investors liquidating their equity positions and looking for alternatives that provide steady yield, Murciano said a good option is to invest in fixed returns property lending.
UK house price growth rose by 1.9% in the year to January 2020, representing the greatest rise in 14 months.
Murciano outlines that as a result the peer-to-peer property lending has emerged as a ‘go-to’ shield from current market volatility for investors.
Furthermore, he added that the Bank of England base rate cut would boost the attractiveness of the sector.
Murciano also believes that the virus uncertainty will affect the London property sector, however, will be largely confined to the international buyer and luxury property market focused on Prime Central London.
He said: “Outside the Capital, property prices are less volatile and there is a growing pool of local, specialised developers delivering projects with strong investment potential, in which investors are showing an increased interest and which is clear from the increased demand we are seeing on our platform too.
“Funds and platforms focused on such property sub-sectors as social, affordable and low-cost housing, where there is a clear undersupply are likely to be among those that investors target as they seek safety during this financial storm."
