Tag: inflation

In this vidcast, we share our thoughts on the decision to withdraw funds from the new savings pot as well as other changes coming into effect under the two-pot retirement amendments. We also look into the possible implications of Jerome Powell's speech at the Jackson Hole Symposium on market. Then we discuss South Africa's latest inflation print, before wrapping up with a look at Shein's lawsuit against Temu.

South Africa’s automotive sector has seen a steady downshift in sales with a year-on-year decline for the fourth consecutive year due to inflation, high levels of debt, a rising cost of living and unpredictable fuel hikes forcing consumers to tighten their purse strings.

The operating environment during the first 6 months of 2024 was challenging and economic activity remained weak, impacted by geopolitical uncertainty, high interest rates, persistent inflation and general uncertainty ahead of the national elections in South Africa (SA).

While inflation is moving steadily lower, we believe the secular shifts of deglobalisation, decarbonisation, and demographic change – the "3D Reset" - will keep inflation and interest rates higher for longer. With the added challenge of geopolitical conflicts, many investors are reassessing their private equity allocation. But almost every year since 2008 has involved a crisis for investors in private equity.

Despite higher inflation, interest rates and cost of living, the South African insurances market experienced a revival during the last two years, with the gross written premium across the local insurances market expected to show an annual growth rate of 5.14% from 2024 to 2028 (CAGR 2024-2028), achieving a market volume of US$100.30 billion by 2028.

In recent years, market uncertainty has become the norm, leaving most investors actively searching for opportunities that offer them stability and long-term growth potential while limiting volatility in the face of constantly shifting economic sands. Against this backdrop, the luxury goods sector has emerged as a compelling investment opportunity for investors.

Soaring flight prices, persistent inflation in South Africa, and rising hotel rates in major business hubs have yet to deter business travel. In fact, the GBTA Business Travel Outlook 2023 illustrates global business travel is expected to recover to its pre-pandemic level in 2024, a full two years earlier than anticipated.

For most people, purchasing a home represents the largest investment they will ever undertake, and carries emotional significance as a symbol of stability, security, and achievement. Property can offer much more than just a place to live – and it can also be a powerful investment vehicle capable of generating wealth, providing liquidity, enhancing cash flow, and diversifying one's portfolio.

With an economic growth forecast of only 1.6% over the next three years for South Africa, businesses are facing a tough trading environment, exacerbated by the impact of geopolitical tensions, disruptive new technologies, persistent weather catastrophe threats and failing public infrastructure and services.

In the midst of buoyant equity markets and impressive returns, the prudent investor recognises the imperative of fortifying their wealth against a risk premium. As markets surge and fluctuate, the need for astute wealth management strategies becomes ever more important – particularly for South Africans who need to measure and manage their wealth in global terms.