The mood or rather the “Moody’s” in South Africa has certainly changed. The rating agency Moody’s has seen enough positive developments in SA since the change in leadership of the ANC and the country and have decided not to down grade SA to junk status.
It does not mean that SA is completely out of the woods but it does signal that the much needed positive economic change has begun. It will take SA a couple of years to reverse the damage done to the economy, but for now we expect 2018 to be one of the better years we have seen in a long time.
The SA Rand is also a whole lot stronger and hovering around R 12 to the US Dollar. It is hard to imagine that in the middle of November 2017 it was trading well above the R 14 to the US Dollar mark. It is always a great time to diversify and look at increasing your global exposure when the Rand is stronger.
Interest rates have also been cut by 0.25% and will bring some welcome relief to those with home loans and other forms of debt linked to the lending rate.
“Land reform” in SA remains a hot potato and all eyes, both local and international, are watching developments closely. It could be the unknown factor that might damper the recent spate of good economic news. But let’s remain positive and rational.
Yes it’s true after 25 years of nothing happening the VAT (Value Added Tax) rate has increased from 14% to 15%, so we can’t really be too upset as we have enjoy 25 years of stability!
So how does this increase effect you? It means that all items and services subject to VAT will now be a little more expensive and so will your ongoing fees with us. VAT is not something we can control and all business and citizens in South Africa are subject to these changes.
Luckily we have one of the lowest fee scales in the market when it comes to investing to lessen the blow of this increase.
Find out how OUTvest fees compare to traditional investment fees.
Did you ever think you would have anything in common with one of the most famous and successful investors the world has ever known, the billionaire Warren Buffett?
Well he believes that low cost passive investment funds like those in which you are invested will do better over time than some of the high cost traditional funds out there.
Speak to one of our financial advisors and start your investment journey.
“Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it - Warren Buffett”