He predicts that the global economy is just one quarter away from a recession “if we are not already in one.
“But the destruction of demand over this quarter and probably over the next quarter is going to have an impact.”
However, he says the impact of “the big wall of money” various countries have pumped in during recent weeks will help soothe the global economy.
The central banks of various countries have intervened and engaged in expansionary monetary policies to shore up economies, including two interest rate cuts by the Bank of England and one by the Federal Reserve.
“I believe even though we may have a recession it won’t last more than one or two quarters,” Mr Kapadia says.
Looking ahead
Mr Kapadia highlights that financial advisers should have a systematic plan that they can execute over the medium term.
“The biggest theme [for financial advisers] will be to consistently invest across solid sectors over the next six months.”
He adds that one can not rush into investment, saying there is no need, due to “a tremendous number of aftershocks expected into the system”. He says his company may wait until the crisis is over to make key decisions.
Part of Mr Kapadia’s five-year plan for the company involves looking to hire more advisers and grow partnerships with various third-party financial advisers.
Running different investment businesses has been a key part of Mr Kapadia’s career, as he was chief executive of Jermyn Capital Partners, and prior to that he ran a family business in Romania, trading commodities.
It is perhaps unsurprising that the joy clients get when markets outperform benchmarks is what Mr Kapadia considers one of the biggest barometers of success.
Sun Global Investments is currently considering taking a licence to serve retail customers, with more developments expected in the next three months.
Saloni Sardana is a former features writer at FTAdviser and Financial Adviser
