I do think that Investors need to be aware that there are some other issues that are playing out that will give us some direction in the future. Thanks to David te Brake from Pioneer for the input.
The Platinum belt strike is becoming a very meaningful stand-off between the Unions and Business.
The Rand / Dollar exchange rate is being affected by some of SA’s weak economic data. Some of the key issues are the current account deficit, the budget deficit, possible lower tax collections, the financing of both these deficits, high unemployment, low job creation, inflation, rising interest rate and the lack of priority for infrastructure spending, as opposed to wage and grant increases. These issues play a much greater role in your investments than the noise around the election.
The markets have continued to perform reasonably well this year; and people keep questioning this. The sad reality is that the rand looks to be on a declining trajectory, and this weaknesses has continued to help push our markets up. This is because a lot of local businesses in South Africa have got operations outside of South Africa and those profits help the markets a lot.
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