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Looking Back at a Volatile 2020 Economy

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21 October 2020

Prescribed Assets: What the Latest Speculations Really Mean for Investors

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21 August 2020
A Brief Look Back at the Second Quarter (Q2 ) 2020: Why the ‘real Economy’ Is in Deep Trouble
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22 July 2020
Rein in Panic Moves as Countries Battle Covid-19
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25 March 2020
Quarterly Economic Review: Us/China Trade Dispute Weighs Heavily on Outlook
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19 July 2019
21
Aug
2020
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Prescribed Assets: What the Latest Speculations Really Mean for Investors

South Africa is facing an ominous debt trap, which creates a lot of anxiety about a potential ‘raid’ on formal savings to keep government going.  In response, there has been much speculation in the press and social media platforms about prescribed assets – and in particular – the possibility of amending Regulation 28 of the Pension Funds Act to include provision for investment in infrastructure.  

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22
Jul
2020
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A Brief Look Back at the Second Quarter (Q2 ) 2020: Why the ‘real Economy’ Is in Deep Trouble

Around the world, various governments have embarked on quantitative easing (QE), coupled with support programmes to help alleviate the disastrous economic impact of the COVID-19 pandemic. However, QE manifests as support for financial markets, rather than for the ‘real economy’.  Notably, QE is a tool whereby the rich get richer – from rising stock prices – in the hopes that the wealth effect will see them spend money that will trickle down into the real economy. As it stands, the real economy is in dire trouble – and business profits are falling – whilst the global financial economy is in an upswing with a stock market recovery that is in full force.  Equity prices are moving upward.

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