The past 12 months seem to have passed particularly swiftly, maybe because fundamentally very little changed. Interestingly, the light in which investors view this unchanged reality is very different: the colour has changed from red to cool white. A year ago investors were desperately seeking ways to take money offshore with the rand trading at R15.60/US$. The rand is now trading at R 13.60/US$ and this quest has gone quiet. This is counterintuitive: surely a dollar at R13.60 is a better investment than a dollar at R15.50 if the fundamentals are the same? The deficit on the current account is similar to a year ago, the fiscal position unchanged and, if anything, the probability of President Jacob Zuma leaving office early has lessened despite ever-more damning evidence of corruption and mismanagement in the ruling party. People have just chosen to worry about these issues a bit less. Maybe the level of concern is normal now and was too extreme in December 2015/January 2016.
A similar picture can be drawn in the commodity markets, where, against all expectations, prices for some industrial commodities have doubled or tripled over the last year. In fact, the risks to Chinese demand, which is basically the only thing that matters in the commodity world, have increased, with debt levels rising and the number of vacant Chinese apartments only growing. The importance of a rational approach The examples above indicate why it is so important to keep a level head and take a long-term approach when investing. A clear view of an asset’s value allows the calm investor to make rational decisions, while others are panicking or getting over excited about current events. Click to read more To find out more information on the different investment options we have please contact please contact Kevin or Thato, email: invest@daberistic.com, tel no: (011 658-1333) Source: Allan Gray What is it?
Tax Free Investments were introduced as an incentive to encourage household savings. This incentive is available from 1 March 2015. How will it work? The tax free investments may only be provided by a licenced bank, long-term insurers, a manager of registered collective schemes (with certain exceptions), the National Government, a mutual bank and a co-operative bank. Service providers must be designated by the Minister in the Gazette. As per the current Regulation, only the above are designated. This is how it will work:
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