MONEY
C O N T E N T PA R T NE R S H I P
THE ROAD TO
recovery
T
Commodity prices are surging since the news that vaccines have been developed and the price of metals has reached an all-time high, resulting in the share price of South African mining companies increasing significantly. In South Africa, the FTSE/JSE Africa All
he ongoing Covid-19
the debt level of the SA government
Share Index (JALSH) increased
pandemic has had a severe
and the contribution government can
to 11,85% since the beginning
impact on the world at large
make to improve business confidence
of 2021 and the one-year return
and, in particular, on South Africans
and ultimately stimulate job creation.
is 25,32%. The 52-week Index
who have had to endure stringent
A coherent plan on how to deal with
range is from a low of 37 177.92
lockdown measures, income loss
Eskom and State-Owned Entities
to a high of 67 736.96, which
resulting from businesses closing,
(SOE’s) is required from Government,
confirms the recovery and growth
job losses, income reductions,
as well as a strong message relating
of the economy arising from
reduced working hours, illness,
to the control of expenditure, as
optimism about the perceived
and loss of life. Those who have
the current economic environment
benefit associated with the vaccine
contracted Covid-19 have faced
is not sustainable. Load shedding
development.
a long road to recovery as the
needs to be curtailed as it was a
aftereffects of the virus tend to
major constraint in Q1 GDP growth.
care about your financial wellbeing
linger, sometimes for up to six
More clarity on government policy is
and your future. That is why
months. South Africans who had
required, given the factionalism within
we offer some of the best fixed-
savings have had to dip into them,
the ruling party. The annual inflation
and for those who did not have
rate in SA ticked up to 3,2% in January
available. We believe
savings have found themselves in
2021 from 3,1% in December 2020 and
that if you spend
At Finbond Group Limited, we
term deposit interest rates
dire straits – some not able to pay for was in line with market expectation, their houses and some not even able
but still close to the lower band of the
to meet their basic living expenses.
SARB’s target range of 3-6%.
The psychological impact on South Africans has likely also been severe.
There is, however, an optimism in the world economy and an anticipated
your money wisely and save, you should be rewarded with interest. Simple and straightforward. With
Although interest rates are at
recovery due to vaccine rollouts in
your money growing,
an all-time low, improvement in
America and European countries,
you will be able to build
business confidence is required for
and even in South Africa, where the
job creation, as well as substantial
government is taking measures to
for the future and for the future
investment by business and
obtain vaccine for health workers.
of your loved ones, so that you can
government to kickstart the South
Vaccine development sees the start
face the future with certainty and
African economy and put it back
of a new economic cycle. The
confidence.
on the road to recovery. The road
South African equity market has
to recovery will be long and slow,
benefited from an improving
financial future. Simple as that.
as the contraction of 7,5% in GDP
emerging market outlook
God bless you all.
since the start of Covid-19 needs to
and interest shown by
be recouped. Treasury forecasts that
investors who are still
Contact Finbond Group Limited today
SA’s nominal GDP growth is unlikely
seeing emerging market
at 0860 44 22 11 or SMS “SILVER”
to exceed the SA government’s
equities as relatively
to 30635 and one of our consultants
debt growth until at least 2024. The
cheap when compared
will phone you right back. Or visit our
prospect of a continually rising debt
to developed countries’
website at: www.finbondgroup.com
to GDP ratio raises concerns about
equity markets.
www.finbondgroup.com •
22
SILVER DIGEST // AUTUMN 2021
on your financial wellbeing
Be prepared and save for your
