The past ten months have arguably been among the most problematic economically and financially since the Great Depression that followed the 1929 stock market crash. And if ever there has been a need to go back to basics, it’s now. But that said, it’s not always easy identifying the best strategies, funds and/or stocks to emerge from quagmires, such as the present one.
Conversely, there is much to be said for the superb advice from the likes of Warren Buffett, such as knowing what you’re investing in, identifying securities and products that will stand the test of time, and keeping a long-term mindset.
Perhaps the most predominant message emanating from portfolio managers and analysts this quarter is the need to maximise your offshore exposure. Not only are domestic earnings and prospects under enormous strain, but sadly our government is principally out of its depth in holding the fort.
Allan Gray’s Sandy McGregor, in an excellent opinion piece, points to our fiscal deficit having grown so large that it’s currently consuming our national savings in their entirety, and, even on the most optimistic projections, threatens to crowd the private sector out of domestic capital markets for years to come.
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SO, WHAT NOW?
AS WE PUT 2020 BEHIND US, 2021 ISN’T EXPECTED TO LOOK MUCH BETTER (THOUGH A LITTLE).
The outlook for SA's four popular investment instruments
As 2020 draws to its bitter close, some respite may lay ahead for local stocks and bonds. The drive to list a diversified basket of offshore-focused exchange-traded funds will likely continue unabated. And the rand? Lest we burn our fingers in ever predicting our volatile currency.
MAKING BAD (INVESTMENT) DECISIONS IN A PANDEMIC
Many investors fell into the trap of either selling stocks at depressed prices during the March market rout, or cashing in their pensions.
Goodbye 2020 ... Hello 2021
Schalk Louw shares his outlook for the largest asset classes available to local investors.
How Has The Covid-19 Pandemic Affected The Inflation Outlook?
Due to deglobalisation and higher commodity prices, inflationary risks are increasing worldwide.
How Technology Influences Politics
Advances in how we communicate will continue to create opportunities for those who want to sow division.
The curious case of the US elections
Introducing Refined Ruggedness
The Ford Ranger Thunder exhibits double-duty dexterity off- and on-road.
Medical Schemes' Healthy Reserves Underpin Lower Premium Increases
The medical aid scheme industry is faced by stagnant membership as South Africans suffer from economic headwinds. Nevertheless, schemes are well positioned to buffer the effect of Covid-19.
Emerging Markets … And Trends
As developing nations navigate their way through the worldwide pandemic, there just might be some investment opportunities starting to emerge, writes Jaco Visser.