Tourism will take longer to bounce back post Covid-19. Picture: 123RF / MARTINKAY78
Tourism will take longer to bounce back post Covid-19. Picture: 123RF / MARTINKAY78

In this edition of the Business Day Spotlight, we’re looking how the local and global investment landscape has evolved due to the Covid-19 crisis. What should you be thinking about before making an investment decision as an organisation or individual?

Host Mudiwa Gavaza is joined by Chris Holdsworth, chief investment strategist at Investec Wealth & Investment SA.

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Holdsworth begins by talking about high-measures of economic activity. Economic data is typically backward looking over a period of a month, a quarter or number of years. Holdsworth says through Google and other tools that track data daily, they have found ways to keep an eye on economic activity in almost real time.

At the moment, the economy is operating 45% below where it would be normally.

Business Day Spotlight host Mudiwa Gavaza. Picture: DOROTHY KGOSI
Business Day Spotlight host Mudiwa Gavaza. Picture: DOROTHY KGOSI

Investment activity has changed over the lockdown period, Holdsworth says, explaining that sectors such as resources offer good value at this time but even that could change given the uncertainty currently.

When it comes to capital allocation, Holdsworth says they are favouring bonds over equity investments in the local market. Outside SA, they see better value in equities over bonds. He explains this rationale, together with some considerations around earnings.

The discussion also touches on how SA is performing at this stage vs its emerging and developed market counterparts; a look at the effects of the coronavirus on the tourism sector and an economic outlook for the rest of the year.

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Business Day Spotlight is a MultimediaLIVE production.