How to invest globally...during a global pandemic
Markets are in turmoil, many stocks have spiralled to all-time lows.
But Covid-19 will one day be a thing of the past.
How can one invest in a portfolio that will bring great returns once that happens?
Is it true that the global financial sector is going to be the first to bounce back?
Firstly I think the market really misunderstands what's happening in the financial sector so there's fear that pushed down share prices to very low levels...the second one is the fear of bad debt - how many companies will default due to the lockdown.Kokkie Kooyman, Portfolio Manager - Denker
But as we get more certainty - this week the CEO of JP Morgan addressed Deutsche Bank in New York and similarly the CEO of Citigroup - both confirmed that the bad debts won't be as bad as expected...the debts in the restaurant and travel industry sure are bad but as a percentage of the total economy that is not that big.Kokkie Kooyman, Portfolio Manager - Denker
Bank lending growth has been picking up...all those corporations that are now having to still pay staff, rental, expenses, but had a huge drop in income are now borrowing...bank lending is accellerating so once the economy starts recovering post-lockdown, corporations will have to lend to build up working capital again.Kokkie Kooyman, Portfolio Manager - Denker
Listen to the full interview below.
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