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.
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
- 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.