offshore investment
Why look abroad when home is looking rosy again?
Since the currency is looking good in SA, investors may be unsure about investing overseas, writes Johann Barnard
Long may the positive influence of the "Cyril effect" continue. The positive vibes that have followed the election of business-friendly Ramaphosa to head the ANC are certainly welcome after years of slowing economic prospects and growing disenchantment. One consequence has been the strengthening of the rand to below R12/US$. This level was last seen in 2015, and the strengthening of 20% was its best performance since 2008 over a three-month period. The improved political outlook is sure to give pessimistic investors pause for thought. If all turns out as positively as imagined, then surely moving cash offshore en masse makes less sense, given the possibility of stronger local returns. Local investors of all types will be forgiven for being unsure what to make of the conflicting opportunities and risks in local and global markets. Apart from the currency equation, they also have to contend with US markets having risen high, maybe too high, on the back of a 10-year bull market. The pu...
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