It’s hard to believe that we’re already well into the second half of what has been an extremely eventful year. Perhaps it’s a good time to take stock and reflect on what’s taken place in 2020 thus far.
Despite the effects of one of the most challenging economic and financial years in history, Q4 2020 proved that there is indeed light at end of the tunnel.
After a remarkable recovery in the second quarter, global markets rose a further 8.1% in the 3 months to the end of September, as measured by the MSCI All Country World Index. The local JSE All Share Index was relatively flat but the much-maligned small cap sector gained 3.5% while mid-caps also outperformed perhaps pointing to a recovery in deeply discounted value opportunities.
The third quarter remained a challenging environment in South Africa. In markets, domestic equities continued to deliver poor returns. This is reflective of the poor state of our local economy and investors running out of patience.