Investing some savings offshore is still a good idea

There has been a lot of positive sentiment in the markets recently, especially following the formation of the government of national unity in South Africa, which has contributed to significant rand strengthening.

- Hardi Swart

However, it's crucial to keep in mind that South Africa currently accounts for less than 1% of the global GDP.

This limited share of the world economy underscores the importance of diversifying your investments across international markets.

Case for diversifying offshore While offering opportunities, the South African stock market is dominated by major commodity producers.

As a result, it is heavily reliant on sectors that are sensitive to global economic conditions, particularly those that affect commodity prices.

This makes our local market vulnerable to fluctuations that could negatively impact your retirement savings.

Why offshore investing makes sense Here are some key reasons why investing offshore remains a prudent strategy for South African investors: