The past 6 months of 2020 have been interesting to say the least. For the first time in a while, the world has experienced a seismic event which has impacted every single person irrespective of their education, background and social status. Many are calling it the new normal with some experts saying that we will experience more of such pandemics in the future.
What does this new normal mean for your investments?
Alternative investments have been on the back seat for many years with equities and other assets classes taking centre stage. The past few months have shown the vulnerability of most industries. This can be seen by the GDP data released by the StatsSA recently.
Every industry was impacted by the global economic shutdown and some more than others. If you had, for example, invested R 100 in each of these industries (ceteris paribus) you would have experienced losses in almost all of them.
The only industry which provided growth was agriculture at 15.10%, this is not a surprise because agriculture is a defensive sector which is resilient in times like these. Whether we are going through a pandemic or the economy is booming we all still have to eat.
The pandemic hasn't just changed how we need to conduct ourselves as a people but how we also need to think about where our funds are invested and if they are in industries that can withstand situations such as the one we are currently experiencing.
Wash Your Hands, Stay Safe and Invest in our products.