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It’s that time of year again where more than 3000 of the world’s top leaders including heads of state, central bankers and representatives from many of the world’s top companies converge on the little town of Davos, Switzerland for the annual World Economic Forum (WEF).
After reaching new all-time highs in September, the S&P 500 lost nearly 13.5% in the fourth quarter of 2018, while MSCI World ex-USA declined by 11.4%. Equity markets have recovered somewhat from their December lows – the S&P 500 came within a hair’s breadth of official bear market territory (-20%) on 24 December, before rallying 5% in the following trading session, the largest one-day gain since March 2009.
Two and a half years after the United Kingdom voted to leave the European Union, it’s finally entering the end-game but with no clear idea of the outcome. At this point, David Zahn, Franklin Templeton Fixed Income Group’s head of European Fixed Income, believes financial markets are crying out for an end to the uncertainty, even if that means accepting the short-term pain of a Hard Brexit.
It’s no secret that 2018 was a difficult year for investors with most asset classes declining in value both locally and abroad. However, one asset class does stand out amongst the rest – SA’s listed property sector. The listed property market experienced substantial volatility and share price decline during 2018, caused by company specific issues combined with local economic concerns.
The strongest deterrent against FSP compliance missteps is or should be: