Benguela Global Letter to Clients on CoVid19 Market Volatility
Since the beginning of 2020, the Benguela team undertook to share, in detail, its views on capital markets at least once a quarter. However, a special letter is warranted to put things into perspective for our clients given how the rapid global spread of the Corona virus (hereinafter, “CoVid19”) has spawned a newfangled financial market crisis festooned with extreme downside price volatility.
To put the recent turbulence into perspective, we note that as of the 16th of March 2020 the FTSE/JSE All Share, in South African Rand terms, declined -20.7% and -29.0% for the month-to-date and year-to-date periods respectively. In US Dollar terms, the FTSE/JSE is down -25% and -40% for the month-to-date and yearto-date periods respectively. Furthermore, the MSCI All Country World Index declined by -20.1% and – 27.5% for the month-to-date and year-to-date periods respectively.
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