Comments on Current Affairs

It is ironic that the impacts of Covid on the global economy has shifted from being a depressant to a significant stimulus …………………

From 1 March 2021, provident fund members will no longer be able to take their total retirement savings as a lump-sum cash benefit on retirement. 

There can be no doubt that the economic events of 2020 were near impossible to predict, and have taken almost everyone by surprise. Here, we take a closer look at the major trends and impacts on global and local markets and sectors…

In the turbulent economic wake of the global pandemic, financial markets have had three significantly different quarters so far this year. Let’s take a closer look…

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.  

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.