How far the JSE’s biggest companies have fallen
Market movements over the past week have been unlike anything we’ve ever seen before.
This was not driven by fear about the future of the global financial system as in 2008. This was – is – something far more primal, as it dawns on investors that over the short term at least, life as we know it is on pause. Economic activity is grinding to a near-complete halt.
The forecast on Friday by Goldman Sachs, which sees US GDP in Q2 to be down 24% quarter-on-quarter, will weigh on markets this week.
This has simply never happened before (in Q4 2008, US GDP shrank by ‘only’ 8.4%).
Also, these were not cataclysmic drops a-la-Steinhoff in 2017. This was fairly indiscriminate selling across the board as investors fled to cash.
The result is that some blue-chip stocks are trading at levels investors have not seen for a decade or more.
Read more article on Moneyweb News