11 January 2021
This report has been prepared by Northcape Capital, the underlying investment manager for the Warakirri Ethical Global Equities Fund.
2020 was a continuous repeat of ‘unprecedented’ events, to use the most popular word of the year. This started with a global pandemic that has cost 1.8m lives so far globally and which had a severe impact on our economies as lockdowns closed down shops, restaurants, travel etc.
All countries around the world saw record GDP declines, with the US printing a -31% (Q/Q annualised) drop, which has never happened before, not even in the Depression of the 30’s. This led to a joint global effort of monetary and fiscal stimulus by governments around the world.
A 68% recovery from those March S&P 500 lows that followed for the rest of the year will likely go in the history books as one of the fastest and biggest recoveries in the US share market.