Market overreacting to coronavirus fears - economist
Efficient Group economist Francois Stofberg believes there is no reason to panic as the outbreak of the coronavirus sends global stock markets and oil prices plunging.
Stock markets around the world have plummeted this week as it has become increasingly clear the virus will take a huge toll on the global economy.
European exchanges lost more than 3.0 percent on Friday, tracking huge losses in Asia and the United States.
Oil prices also dived four percent to their lowest levels for more than a year, with Brent oil for April delivery sinking as low as $50.05 a barrel.
The rand has also now been spared, breaking through the R20 barrier to the pound.
Stofberg says there are fears that the epidemic could lead to a global economic slowdown.
"Our expectations are not to see a global recession or a substantive slowdown, but we feel that the fears around the coronavirus are well overpriced and well over-emphasised.
"It is not like the swine flu and some of the previous corona type viruses we have seen in the past.”
Stofberg adds: "What we have seen is that this is sensationalism and investor fears because of the long expansionary cycle that we have seen in the US.”