12 Mar 2020

Covid-19: Call for calm amid the storm

In the midst of plummeting markets and public hysteria, it’s important to remember that investing is a long-term game and panic selling can do more harm than good to your portfolio.

In this podcast, a panel of experts from Investec Wealth & Investment in the UK and South Africa give their views on the Covid-19 pandemic and what investors need to keep in mind.

 

Our panel:

 

John Wyn-Evans (Head of Investment Strategy, Investec Wealth & Investment UK)
Chris Holdsworth (Chief Investment Strategist, Investec Wealth & Investment SA)
Alexandra Nortier (Joint Head: Wealth Management, Investec Wealth & Investment SA)

Christian Fraser, BBC correspondent and journalist (interviewer)

LISTEN: Markets & investing in the time of COVID-19

Key takeouts:
  • COVID-19 is not as deadly as Ebola and SARS, however it is highly infectious.
  •  Investors expected a supply shock from China in the markets, but we got a demand shock with consumers putting a halt on buying.
  • Central Banks can mitigate the effects of Covid-19 by cutting interest rates, but this won't help if no one is spending.
  • Highly likely that Germany, Italy and the UK are going to go into recession in the summer.
  • Infections in China and South Korea are slowing down, so it is possible to contain the virus, but at what economic cost? China shut down their whole economy.
  • South African exports like coal and iron ore to China will be affected. Tourism is also likely to be hard hit. 
  • If government responds with another interest rate cut, it will be good for South African consumers, but not for economic growth.
  •  A Moody's downgrade has already been priced in by the markets.
  •  When it comes to investing, now is not the time to panic. The old adage of time in the market being better than timing the market still holds.
Discover how Investec Wealth & Investment can help you

Private clients