COVID-19, The Economy And Politics
Apr 22, 2020
The new coronavirus has knocked the stuffing out of the world's economy. South Africa was in a recession even before the virus struck. Then came the (final) credit rating downgrades in March and April, and then the global lockdown. South Africa's economy is now expected to contract somewhere between 6% and 8% in 2020.
How will the ratings downgrade affect me?
Mar 31, 2020
There has been much speculation for some time that South Africa could be downgraded by Moody's to sub-investment grade or "junk" and this has now at long last occurred as at the end of March. The Moody's rating has been notable in that it is the only one of the three major ratings agencies that had not yet downgraded SA's foreign rating.
Time in the market remains superior to timing the market
Mar 27, 2020
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.
South African Reserve Bank Interest Rate Cut
Mar 26, 2020
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.
LAND EXPROPRIATION WITHOUT COMPENSATION
Feb 03, 2020
Changing the Constitution to allow for expropriation without compensation has certainly ignited South African politics for 2020. It is worthwhile cutting through the noise.