Standard & Poor's and Fitch ratings agencies is expected to give their verdict on the country's rating by the end of this week.
The financial analysts at FSPInvest believe that a downgrade to junk status is inevitable. Even if this doesn't happen this month, it will happen before the end of 2016.
Here's what will happen to the economy and your investment portfolio if the downgrade does happ... ››› more
Friday morning proved to be a good day on the JSE as it recovered from Thursday's sell-off which was triggered by news that US interest rates will increase sooner than expected. Global markets like the US and Asia are still struggling but the European markets joined the JSE in its recovery.
Considering that May is usually the worst month for the JSE, things are not looking as bad as investors... ››› more
The past few weeks have been harrowing for the rand.
It's been taking a severe beating from the dollar in the past two weeks.
Worst of all, rumours about the arrest of Pravin Gordhan has certainly not been helping matters at all. But, finally, it seems to have found a moment of stability. How long this will last, I don't know.
But let's take a closer look...
The rand is battered by t... ››› more
Yesterday I warned investors that the rand will lose strength against the dollar because of the rumours that the Hawks want to arrest Pravin Gordhan for his involvement in the establishment of the SARS rogue unit while he was the tax agency's commissioner. As I expected, that's exactly what happened. But now, where to from here? Is it time for South African investors to be really worried? And wha... ››› more
This morning, the rand is trading at R15.51 to the dollar. In 11 days it's lost 54 cents against the greenback. This is only the beginning of the rand's fall.
If you think this is bad, keep an eye on the rand this week. I expect to see a significant weakening against the dollar thanks to new rumours in the media related to the arrest of our finance minister, Pravin Gordhan. “Pravin Gordhan fa... ››› more
Chris Hart, regular contributor to the South African Investor predicts that the rand will hit R60 to the dollar by 2019. He also believes that credit ratings agencies will soon declare South Africa's junk status before the end of this year. This is bad news for South African Investors. But just how worried should you be? And is there anything you can do to hedge your investments against this event... ››› more
The International Monetary Fund reports that South Africa is now Africa's third largest economy. Egypt has knocked us off our second place position.
South Africa's economy has been steadily declining since 2012. The South African currency weakened from an average of 8.20 rand to $1 in 2012, to 12.74 rand to $1 in 2015—a depreciation of more than 50%.
South Africa has barely managed to d... ››› more
From 1929 to 1939, the deepest and longest-lasting economic downturn in the history demolished the Western world. This was a period of rampant speculation which led to a market crash of epic proportions - known as The Great Depression.
In just three days, the Dow Jones sank from 400 to 145 wiping over $5 billion worth of market cap.
During this volatile period, one of the greatest investment... ››› more
South African interest rates are up 0.5% for the year.
This was the South African Reserve Bank's (SARB) reaction to growing inflation and a weakening rand.
And, looking, at what's going on internationally I expect South African interest rates to go up even more in 2016.
You see, the US Federal Reserve Bank signalled it was likely to increase interest rates at its next meeting on 15 Decemb... ››› more
Earlier today saw the release of the RMB/BER business confidence index. The data showed that business confidence is continuing to fall.
So what is putting pressure on business confidence?
Let's take a closer look…
The business confidence index falls to 36
Business confidence has hit 36 for the last quarter of the year, reports Fin24. This after the index fell “from 42 to... ››› more
Earlier today, Stats SA released its producer inflation data for October. The data showed that the rise was mostly due to climbing food prices.
This data could indicate that a jump higher in consumer inflation could be on the cards.
Let's take a closer look at what the data revealed…
Producer inflation rises to 4.2%
Producer inflation, as measured by the producer price ind... ››› more
Earlier today, Stats SA released its gross domestic product (GDP) data for the three months to the end of September.
This comes after two quarters of negative growth this year.
Let's take a closer look at what the data shows…
GDP rises 0.7% from July to September
GDP rose by 0.7% in the third quarter of the year in comparison to the second quarter when the economy contract... ››› more
Earlier today, the Reserve Bank's monetary policy committee revealed that it was hiking interest rates.
This comes as the majority of economists seemed to believe that the bank would hold off hiking rates for the moment.
Let's take a closer look at the Reserve Bank's decision…
An interest rate hike takes prime to 9.75%
This afternoon, the governor of the Reserve Bank, ... ››› more
This afternoon, the Reserve Bank will give a statement following the central bank's monetary policy committee meeting.
The main concern will be whether the committee decides to hike rates or not.
Let's take a closer look at what could be on the cards…
Will the Reserve Bank hike interest rates 0.25%?
There is a growing consensus that the Reserve Bank will hike interest rate... ››› more
Today, Stats SA released its retail sales data for September. Growth in sales fell.
With consumers feeling the strain, this data may provide further reason for the Reserve Bank to keep interest rates unchanged tomorrow.
Let's take a closer look at what the data revealed…
Retail sales dipped in September
Stats SA reported that retail sales growth fell to 2.7% in September, ... ››› more
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