The Coronavirus pandemic has been felt in nearly every corner of the globe, taking a heavy toll on human lives and economic activity as global lock-downs were implemented to help prevent its spread.
As the world economy begins to recover, consumers and investors alike now have to make informed purchasing and investment decisions.
Investment experts have highlighted that politics, policies and pandemic which they are calling the three Ps will be major factors in the business markets.
With the US presidential and congressional elections just weeks away, the business markets will be steadily responding to how things pan out in the US politically.
When it comes to policies, governments around the world which includes the South African government are now being forced to re-examine policy direction and consider shifts in policy to stimulate the economy and direct limited resources to needy areas.
The pandemic will continue to be a major consideration. With Covid-19 cases still rising in certain parts of the world, lockdowns and disruptive measures can’t be ruled out even though more and more governments now know what it takes to contain and live with the Covid-19 concerns and fears.
The stimulus packages being offered by governments are also contributing to keeping market liquidity flowing. Volatility can therefore be expected in the next 6-12 months.
The good news is that the global economy will continue to grow especially in resilient sectors like technology. The only concern moving forward are the sectors which more highly exposed to covid-19 impact and restrictions like tourism.
The decision to invest will therefore depend on what type of industry it is and other external factors like politics and policy. The amount of risk exposure one is ready for will ultimately be the deciding factor.
