Benguela Global Letter to Clients on CoVid19 Market Volatility

Dear Client

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.

To continue reading download PDF below