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6 tweets,
2 min read
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1/ I see dozens of tweets like this. People scared witless and 'divesting' out of SA no matter what the cost (often 36% tax on hard-earned pension savings) and without thinking it through. Sure have some offshore exposure, but unless you are emigrating in the near future...
2/...do not destroy your pension savings in a knee-jerk reaction to scare-mongering. At least wait a bit. The JSE still offers substantial off-shore earnings and SA Inc stocks are at attractive valuations. Interest is picking up & value is starting to crystallize.
3/ If you miss out on a few good JSE weeks such as last week, it will be near-impossible for you to make this up by buying overvalued foreign stocks with a weak Rand and after throwing away 36% in tax. Plus all the associated fees & costs.
4/ Prescribed assets may be coming, but if the asset mgmt industry insists on cleaned-up SOE's first (and the crooks are prosecuted) this may not be the end of the world, or the end of reasonable returns. And it will probably take time to implement.
5/Have a little faith in our JSE. We still have many well-managed companies. Government is atrocious, but how much worse can it really get? If Ramaphosa can survive the current fight-back (I'm praying hard) there could well a return of confidence and a nice boost for our economy
Please! I am just offering one, slightly more positive view. Just to balance things out a bit. I cannot defend Venezuela, Zim, Argentina, NHI, prescribed assets, Eskom, cupcake, state capture thieves and whatever else you want to throw at me. It's just one angle. That's all.
