As l heard of the first confirmed case of Covid-19 which hit South Africa, the first question which came to my mind was “will the economy be able to recover from this, with the recessions and the downhill we currently facing?” I wonder what the future of the African countries would be like. I am just hoping this virus will leave without any repercussions to our African strained economies.
For the past two weeks, l have been observing and listening and l had a few lessons, the negatives, and the positives which I have learned and l am still learning. My main interest is on the impact on financial markets and the reactions of individuals. Therefore, will start with the positives.
Positive effects on the Financial Markets:
- Cut on Interest rates – Last week Thursday it was announced that the interest rates will be cut by 100 base points. What does it mean to me as an individual? I was happy with this announcement as it will work to my benefit, as the bond rates are also going to be reduced and we can have an addition to the savings account.
- Property rates lowering – with the reduction in interest rates we seeing the prices of properties is also lowering. This is the right time to buy that property or invest in properties.
- Stock markets share – with the adverse worldwide effect being caused by the coronavirus we have seen the price of shares going down too. This is the right time to invest in shares.
- Business opportunity – many business-minded people have seen an opportunity to make extra income with the situation. Many products are now becoming scarce due to high demand, so if you got the skills and capacity to manufacture you might make yourself some extra money.
Negative effects on the Financial Markets
- The rand weakening – we have seen the rand has been weakening against the US and Pound, causing general prices just to rise which has an adverse effect.
- Effect on companies and employees – I do not like speculating but as from media and the news, it is being said that the next few weeks might get worse. Not sure what it means? As for myself, l am just getting prepared.
Panic Buying or Being Prepared for the worst
- Have seen many people stockpiling on the basics and not sure whether to call it panic buying or it’s being proactive and preparing for the worst. I have not done anything yet as l am being positive that we will not get to the lock downstage, will see how the coming weeks will be like, and see if l should react or not.
In all situations l choose to focus on the positives and park my mind there and concentrate on that. My question to everyone who will read this post; what are the lessons you learned or are you still learning with this pandemic disease?
Let us all not forget to continue practicing social distancing and maintaining good hygiene. Let us keep safe.
Author: Talent T. Manyonga