Compass

Navigating uncertain waters: A guide

One things about politics in South Africa: it’s never boring. This week alone, the finance minister was mysteriously called back from an international investment roadshow, and the funeral of an ANC stalwart became the site of strong criticism of current leadership.

As so often in this country’s recent history, the watchword is uncertainty. Last month, we looked at some of the places experienced investors turn in unpredictable times

In order to help navigate our uncharted political waters, we’ve compiled a reading list examining the context in which our politics occurs, and what it could mean for your investments.

Currency concerns

Invariably, the free-falling rand is the first thing people mention whenever there’s a political crisis. But how exactly does currency volatility affect your investments?   

We illustrated the real-word effects on your portfolio by considering an unusual hypothetical: what would happen if Donald Trump had invested his inheritance in the JSE.

If Gordhan goes

Most commentators and investors agree that Finance Minister Pravin Gordhan has been a safe pair of hands. Of course, he is not the only person qualified to fill the role, but any unilateral decision by the president to recall him for no good reason is likely to spook the markets. Our analysis explains why the resulting decline in investor confidence would be so harmful to the economy.

It’s not all bad news…

South Africa’s institutions have held up well in the face of state capture concerns

… but we need to use our taxes more effectively

Our country’s infrastructure and our health as a nation depend on efficient expenditure. We could do much better.

Can we even trust the experts anymore?

In some senses, we need expert advice more than everBut we should be more critical of experts’ methods and recommendations.

How are you preserving your wealth amid unpredictability? Visit our Facebook page and let us know.