04/03/2021
"We have experienced stability in the currency market but slow progress in the equities market.
Pension funds experienced a knock and the aftermath of Covid19 has truely shown itself especially with the lock down. Many big corporations have offloaded their assets for a fraction of what they are worth as a way to minimize loss. A series of boardroom changes have also taken place which can only indicate two things, worry and uncertainty about how the future might look like for both small and big business. The tourism industry has suffered the worst fate especially now with the amended level 1 rules and hotspot regulations which have made the rand lose ground on announcement. With a third wave on the horizon, it will only get worse before it becomes better. Economic pressure which will force government to look into ways to bail out state owned entities and possible ways to avoid sovereign debt default. The education of our children is on the brink of collapse which is supposed to be priority over bailouts.
Corruption is still rife despite efforts to curb it. Only R16,71 billion of the R200 billion was paid as financial relief to "qualifying" businesses according to the banking association. Which is shocking. To say the least! Mining companies are in tugs of war with each other, their partners in exports and imports as their mines stay idling with no work.
Only 3% of the South African population will receive vaccination on the first quarter of 2021.
It is difficult and stressful due to the goals we have; to experience higher yields and eventual capital growth in months to come, which were almost completely wiped out due to more than 10 years setbacks experience because of the virus. Resilience and persistence are two qualities that you need to posses for survival in this trying times. In times of retrenchments; loss of employment, which I'm hoping the unclaimed funds (which the Supreme Courts have ruled in relation of) need to be paid out, will alleviate some stress for most people, in times of business closures and bankruptcies, with the hope phase slowly fading out and disappearing, hunger, sickness, poor governance and poor leadership and no form of capital, our economy will recover yes, but it will be many many years from now.
It only makes sense to Seek Good Growth, passively, the kind of growth that will not charge you 10 times more in the long term, which will eventually swallow your profits. Taking a serious look at your Total Expense Ratio especially if you have a portfolio that includes ETFs (Exchange Traded Funds) is advisable. Know who your driver is before betting on any race" - David Sikhosana, Founder & CEO HFT Capital