Offshore investment: time to keep a level head
Amid current volatility, investors should be prudent and look to long-term diversification
After years of muddled economic policy that has strangled growth and placed the rand on a terrifying roller coaster, local investors could be forgiven for looking abroad for growth and certainty, writes Johann Barnard. If one were inclined to look for a positive in the economic decline, it could be that SA investors have a much greater appreciation for diversifying strongly into offshore markets. There are many good reasons to do so, in a prudent and planned manner. However, the problem for many local investors is an inability to keep a level head in times of such extreme swings. There were few level heads, for instance, in the wake of the firing of finance minister Nhlanhla Nene in 2015, when money was shipped abroad at the rand’s lowest levels. Prior to that there may have been a sense that adding an international flavour to portfolios was a good idea, but there was less urgency to do so. "Nenegate" changed all that. Allan Gray’s Tamryn Lamb says there has been a noticeable upsurg...
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