Invest offshore and find value in the midst of upheaval
The global economy is in unprecedented turmoil due to COVID-19 . Well , not quite ! Despite what many commentators would have you believe , this is only partly true .
Turmoil – yes . Unprecedented – no . In the last 100 years the global economy has experienced the Great Depression of the 1930s ; the gloom of the early 1940s when the Allies seemed to be on the brink of defeat during the Second World War ; the 1987 stock market crash ; the global financial crisis of 2008 . Plus a few more upheavals in between .
In isolation , each event was viewed as an unimaginable disaster at the time . Yet the world economy survived and , ultimately , thrived once more . This time will be no different .
During each of these crises there were certainly losers – companies , industry sectors and even entire national economies that were negatively impacted . Yet we also saw the emergence of many winners : there were strong companies that benefitted from the crisis ; new industry sectors which emerged to take advantage of a changed world ; well-run economies that attracted investors .
New opportunities for astute investors
Our pandemic-wracked world of the early 2020s is no different . As we speak , there are new opportunities , with better prospects sure to emerge when the pandemic wanes and eventually passes into history .
Given this reality , now is the time for investors to seek out asset managers who
have successfully navigated past crises . It is time to join forces with those who have successfully built diversified investment portfolios capable of withstanding and benefitting from the inevitable market cycles , and who trust their own fundamental analysis enough to invest with calm and conviction , even during the most uncertain circumstances .
Andriette Theron , Head of Research at PPS Investments , emphasises that while the current situation cannot be underestimated , it is also vital that investors remain calm and explore opportunities that others may not have the foresight to pursue .
PPS is committed to investing in South Africa and sees signs
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