Morgan Stanley says it may be time to buy as coronavirus, oil batter markets

Global stock markets sank despite a plethora of measures by policy makers worldwide to cushion the economic effects caused by the novel coronavirus. The Dow Jones experienced losses not seen since the 1980s, while the Johannesburg Stock Exchange tumbled 29% last week. Currency markets were also volatile as investors piled into the US dollar. The coronavirus pandemic has wiped off near a third of the global market cap in just a week. In the US,  the market is clearly moving into a base case of a recession. In South Africa, President Cyril Ramaphosa is aware the coronavirus pandemic would have a "significant and potentially lasting impact on our economy", with exports and tourist arrivals declining. According to the Big Four accounting firms, R200m and 1,000 jobs will be lost because of the effects of the coronavirus. What should investors do now? Longer-term investors may want to consider adding to equity risk. Mike Wilson, chief US equity strategist and chief investment officer for Morgan Stanley shares his views on the current global market rout. – Stanley Karombo

By Thulasizwe Sithole

The US government is proposing a $1trn Coronavirus stimulus package, while the Fed has announced a $700bn quantitative easing programme to inject capital into the market. Notwithstanding all the measures, the economy many believe is heading for a recession.

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