Get Focus insights straight to your inbox
In this podcast, a panel of experts from Investec Wealth & Investment from South Africa and the UK 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.
Trust us to manage your wealth today