Given South Africa’s volatile currency and the fact that our economy represents less than half a percent of world GDP, astute investors will usually seek exposure to other territories. This enables them to mitigate local risks and take advantage of a wider set of global opportunities and hard currencies. The case is, however, sometimes made…
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Debt woes at Chinese property developer, Evergrande, sent markets into a spin earlier this week, with investors questioning whether the company would default on $119 million in interest payments due on its bonds. Founded to capitalise on China’s ascending middle class and booming economy, the company is fuelled by $300 billion in debt and is…
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With inflation worries on the horizon internationally and locally, many are concerned that this could adversely affect economic growth and corporate earnings, which have just started to recover from the extreme downside caused by the global coronavirus pandemic. As inflation increases, central banks are tapering off stimulus packages, and need to do so in a…
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The rand was surprisingly strong this week, gaining 2.3% against the dollar. What is unusual is that it achieved this in the midst of a stronger dollar and slightly softer global equity markets. Ordinarily global risk-on sentiment leads to a weaker dollar, rising global equity markets, and stronger emerging market currencies. At the moment, the…
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International markets seem set on strong growth, with the S&P 500 closing several days at new highs. The S&P hit its 50th all-time high on 24 August 2021, placing it 20% up for the year to date. It seems this market is pricing in job gains with the US probably having added 725,000 jobs in…
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