A recent presentation by a top financial planner highlights that if you're concentrating on South Africa's markets, you're going to lose out on investment returns and global growth.
Wouter Fourie, a top-flight financial planner, recently delivered a presentation on offshore investment at the first Global Matters virtual engagement online conference, sponsored by Momentum Investments. He demonstrated that most people who invested offshore, using their assets in their investment-linked living annuities (living annuities or illas), had made gains - it didn't matter about Covid-19 or the Jacob Zuma kleptocracy regime.
This is what the data now looks like:
In his presentation, Fourie referred to South Africa as the "1% country" - not in a nasty way, but in a realistic way.
His reasons are:
The gross domestic product of South Africa is about 0.5% of the world GDP,
The JSE stock exchange accounts for about 1% of global investment opportunities, and
The rand accounts for less than 1% of world currency markets.
We are actually quite a small economy, only equalling one of the US's smaller states.
Fourie says if you are going to concentrate on South Africa's markets, you are going to lose out on investment returns for the following...