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What does the global economy’s recent shift towards a "Goldilocks” economy mean for SA?
During his 2017 Medium Term Budget Policy Statement (MTBPS), Finance Minister Malusi Gigaba, announced figures that surprised even the most bearish of forecasters. Although some fiscal slippage was widely expected, it was the frank transparency with which he delivered his speech that sent the market into panic. There were few positives for him to hide behind.
There will be few who disagree that South Africa faces significant economic and investment challenges in the days, months and indeed years ahead.
During October US lawmakers took important steps to implement President Trump’s proposals to reform tax, which among other things entail cutting the top US corporate tax rate from 35% to 20%. Markets were encouraged by this move and the Dow Jones Industrial Index broke through the 23 000 mark for the first time. US jobless claims returned to former low levels after a brief spike during hurricane season. US inflation remains contained and the Federal Reserve kept rates on hold at its meeting on 1 November. UK inflation came in at 3% for the year to September, the highest level since March 2012.
If you had to choose one approach to protect your hard-earned investment cash from today’s market madness, which would it be?