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Years of fiscal consolidation - cutting expenditure and raising revenue mainly through tax increases, have failed to deliver the desired outcome. The Main Budget deficit is likely to exceed 6% of GDP in 2019/20 with the gross loan debt ratio increasing to more than 60% of GDP by the end of this fiscal year.
The mood in the country is still very gloomy, despite the best efforts of the Springboks. The economy is under pressure, corruption seemingly continues to go unpunished and load-shedding has made an unwelcome comeback. The large political parties all appear divided.
The South African investment community appears overly negative about the local market at the moment, where there is, in fact, ‘a lot to like’ about the country’s trajectory and current asset prices, according to the president and chief investment officer for Morningstar’s Investment Management group, Daniel Needham.
As any parent of young children will attest, the need to know “why” and “when” is a natural human tendency. It is also the mainstay of daily market commentary and investment articles. Human beings believe that if we know why something happened, it will help us make sense of it and form a better basis for future decisions. We want a thread of causality – and, if at all possible, a linear one with a timeline.
Do you think short-term insurance broking will survive the AI plus humanoid robotics age?