Gone are the days when the effects of Brexit and load-shedding made for the most prominent watercooler conversations. Welcome the COVID-19 media era, where ‘watercooler conversations’ happen online, and crisis and fear-gripping headlines are the new order of the day. Indeed, we live in remarkable times where a new chapter in history is unfolding before our eyes, bringing with it a unique set of challenges.
On Thursday the 19th of March, the governor of the South African Reserve Bank (SARB), Lesetja Kganyago, announced a reduction in South Africa’s repo rate by 1% from a level of 6.25% to 5.25%. The repo rate is the interest rate at which the central bank lends to other commercial banks. This significant move from the central bank followed the cut of 0.25% towards the beginning of 2020 and is the first time that the bank has reduced interest rates at consecutive meetings since 2011.
Question:
My friend has told me about some hot funds that have been performing really well recently, with double-digit returns. Isn’t it a good idea to include these funds in my portfolio?
The recent significant market events related to Steinhoff International Holdings and its subsidiaries have been widely reported in the media and we would like to share our views as well as the views of the various asset managers who manage your portfolios.
A lot has been said over the past year in the media regarding the possibility of whether South Africa (SA) will be downgraded to “junk status” by the respective rating agencies, namely Moody’s, Standard and Poor’s (S&P) and Fitch.
While you were away, much has transpired in our economy, headlined by the shock removal of Minister Nene by Jacob Zuma. The surprise announcement was not received well by markets, with an estimated R500 Billion in value, being wiped off since the debacle.
It looks like it may be a hat trick, but in a negative sense. By JP Landman – Political Analyst
Investors are regularly reminded of the wisdom of investing offshore and not adopting an investment strategy that focuses only on South African assets. There are a number of compelling reasons for investing offshore.
Periodic volatility in global markets, diverts attention away from the key components of long term investing. In times such as these, Allan Gray subtly
