SEKGABO MOLELEKOA: Look for firms that can ride out the Covid-19 storm
With no hope for any growth this year, think of this time as a huge sale with massive discounts
Covid-19 is everywhere and wreaking havoc on consumer sentiment. It was just a matter of time before a catalyst drove heated global markets down. SA’s economy was already poised for little to no growth in 2020 on the back of many factors, chief among them being Eskom. There’s no hope for any growth this year.
Change perspective and think of this time as a huge sale with massively discounted goods on offer. SA Inc has borne the largest brunt while rand hedges have plummeted, despite the rand losing 12% to the dollar. Since the beginning of March, gold has returned about 1% while the S&P has been clawing back losses and is now -16%, almost wiping out 2019’s gains.