FEBRUARY
2018 NEWS
In my earlier newsletter I mentioned that because of the JSE correction, there is probably a buying opportunity. Some
clients have been asking whether one should not be moving cash or investments
in Rands to USD offshore, as the present strength of the Rand may be an
overreaction giving a USD buying opportunity. Ramaphosa’s election of his new
cabinet is giving much more clarity to the markets after all the chaotic
uncertainty. We believe February will be the last bad month for both the South
African hedge fund and unit trust fund with good prospects for 2018,
especially during the first half of 2018.
We expect the Rand to maintain its present
strength for at least the first half of 2018 and we expect growth in unit
trusts, especially quality hedge funds to outperform offshore investments, on
which you will lose out if you switch to offshore too hastily.
There are good fundamentals for switching to
offshore when the Rand starts to show signs of
weakness by the end of this year when offshore investments should start to
outperform with business friendly legislation in the US, which is already
influencing the rest of the first world markets.
Friendly
greetings
Andre
Delport
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