• Stonewood AM

Year to Date 2020 - Market Review

A quick overview of the local and offshore market performance for the first four months of 2020 (01 Jan 2020 - 31 Apr 2020) will provide interesting context and insight into our commentary and research. We will give a breakdown of local asset class performance as well as offshore hard currency asset performance.

Local Market Performance (ZAR R Denominated)

Source: FactSet

At a glance, it has been one of the most unique periods in financial market history with the impacts of two “Black Swan” events taking place simultaneously (COVID-19 and Oil).

We have seen the quickest selloff in market history, with record levels of volatility. Interestingly though we have also seen a monumental response from Central Banks and Governments across the globe and as a result, we have seen a very sharp recovery with April being the best month for equities in almost 30 years.

Offshore Market Performance (USD $ Denominated)

Source: FactSet

All this has taken place while most of the world has been in some form of lockdown with global economies almost grinding to a complete standstill and unemployment rising fast and furiously.

Commodities (USD $ Denominated)

Source: FactSet

FX Markets (USD $ Denominated)

Source: FactSet

As it stands year to date numbers for most investors show mildly negative returns, although Rand weakness may explain some positive balances if you have had significant offshore exposure and have converted that performance back into ZAR. Oil has been an outlier, dropping off a precipice in light of an oversupply glut and standoff between the world’s biggest producers at a time when the demand has just about evaporated.

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