The term banking crisis is often overused. Certainly, there are times when it's appropriate, like during the 2008 Global Financial Crisis, however it's usually just a term used to describe a rather minor disruption to the normal functioning of a country's banking sector. Well, that's not the case with China currently.
The country is in the midst of a true banking crisis. How bad is it? Well, th... ››› more
The GEPF recently announced that it plans to invest more of its funds offshore. This move could have a massive negative impact on South African financial markets.
How big a negative impact?
As much as FIVE times worse than the country being downgraded to junk status.
Some of you ... ››› more
Around decades ago, offshore investing was only available to ultra-high net worth investors; but we've come a long way since then.
Now you can invest in markets across America, Asia, Africa…you name it.
And this makes the idea of offshore investing not only interesting, but downright exciting too.
However, just as there are endless opportunities out there for you to choose from, ther... ››› more
I call it the “offshore investment conundrum”. Investors have no clue where to invest or what to invest in, leaving their cash exposed to unpredictable economic and political events. Investing in just any old offshore product will cost you time and more importantly, money.
While I admire the ambition of investors to identify opportunities elsewhere, the fact of the matter is, over half of ... ››› more
Imagine a country with massive amounts of natural resources.
The richest economy in its region.
However, there are signs of trouble, including rising inequality and societal unrest.
To combat this the government is turning to populism by taxing the rich, confiscating assets and dramatically increasing the redistribution of funds to the poor.
This is not South Africa in 2017 I am t... ››› more
You're probably familiar with SA's successful emerging market tech and media giant: Naspers.
'But as a South African you might not have considered skipping across the water and putting some money to work by investing in its fast growing US eCommerce rival: Amazon.
This US retail behemoth is often overlooked in offshore portfolios, but, I believe, should be a vital inclusion for any investor... ››› more
Since 1990, the rand has depreciated at an average of 6% per year against the US dollar. Due to the growing budget deficit and poor economic situation in South Africa, the rand is likely to get worse.
Think about this. The JSE only contributes around 0.5% to global GDP, that means if you stick to local investments only, you're not taking advantage of international investment opportunities.
... ››› more
Investing offshore has its advantages.
By investing in offshore markets, you diversify your portfolio. This helps to lower your overall risk.
But by investing offshore, you take on currency risk.
So what is currency risk? What does it mean for your investments? And can you avoid currency risk?
Read on to find out…
What is currency risk?
Currency risk is a risk you take on wh... ››› more
Investing offshore is a great way to add some diversification to your portfolio. By investing in different markets across the world, you can gain access to companies and sectors that are simply not available to invest in here in SA.
Investing offshore can also help protect you against the rand depreciating. If the rand weakens, your offshore profits can grow faster.
So if you decide to inves... ››› more
Greece's stock exchange is closed today (29 June 2015). After creditors refused to extend the country's bailout, we have queues of worried Hellenes lining up to withdraw their money.
And now, we're all waiting for that big decision.
But there's something you also need to know. Alex Tsipras (the new prime minister of Greece), is anti-government interference.
This means the Syriza political... ››› more
If you're looking to broaden your investment horizons by putting some of your money to work offshore, you need to conduct your due diligence first.
You must do this before parting with any of your cash. Unfortunately there are some unscrupulous individuals out there trying to swindle investors out of their hard-earned money.
So what should you check out?
Read on to find out…
Inves... ››› more
When it comes to investing, shares on the Johannesburg Stock Exchange aren't your only option.
You could take some of your capital and put it to work in international markets.
So what are the benefits of international investing?
Read on to find out…
International investing minimises your exposure to tax
International investing can minimise the taxes you pay to the South African... ››› more
The underlying reason for investing offshore is to benefit from offshore diversification.
Diversification reduces your overall investment risk by investing in different assets that have unrelated returns.
So what are the other benefits of investing offshore? And how should you spread your offshore investments?
Read on to find out…
The real reason to invest offshore
Offshore div... ››› more
If you invest on the Johannesburg Stock Exchange, have you given any thought to the investment opportunities that lie offshore?
By putting your money to work offshore, not only can you lower your overall portfolio risk, but you can gain access to investments just not available to investors in South Africa.
Read on to discover how you can get started investing offshore…
The world real... ››› more
If you want to successfully invest offshore, many of the principles are the same as investing in South Africa.
So how can you decide on the best investments for you?
Read on to find out…
Investing offshore principle #1: Look at long-term performance
When looking at different offshore investment opportunities, look at how they’ve performed over the past ten years or so.
This wi... ››› more
If you're contemplating putting your money to work offshore, have you given much thought to what you're going to invest in?
Stocks may be the first thing that comes to mind, but there are a number of other considerations.
Read on to find out more…
Four ways to put your money to work offshore
Offshore investing vehicle #1: Stocks
By investing in offshore stocks, you’ll find ... ››› more
Investing offshore gives you the opportunity to invest in sectors and companies you don't have access to on the Johannesburg Stock Exchange.
But before you jump into exploring offshore investment opportunities, it's important to keep some key factors in mind to help you find the right investment.
Read on to find out what these factors are…
Explore these aspects before investing offsh... ››› more
Investing in international markets is a great way of diversifying your portfolio.
International markets may perform differently to stocks in South Africa. And you'll be able to gain exposure to stocks you can't invest directly on the Johannesburg Stock Exchange.
Investing in international markets also helps to protect yourself against rand weakness.
So what's the easiest way to invest in ... ››› more
A diversified portfolio is a good way to lower your investment risk. This includes investing in different types of assets and investing in different sectors.
To gain optimum diversification, you should include offshore investments in your portfolio.
So what are the benefits of investing offshore? And what offshore markets should you look to?
Let's take a closer look…
The benefits ... ››› more
Investing offshore can benefit your portfolio.
It can be a good way to diversify your investment portfolio. And it gives you the chance to get into some potentially lucrative investments you may not have access to in your home market.
But it comes with a downside. It exposes you to considerable exchange rate risk.
So what exactly is this exchange rate risk and what does it mean for your i... ››› more
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