10 Jan What Lies Ahead In 2017
Welcome to 2017.
This year should give us as South Africans a firm footing after a hectic end to 2015 and very rocky 2016 to say the least. The year gone by was fraught with many disruptive forces, the vote on Brexit and the US Elections, all of which turned out very different to what the market indicators anticipated. On the home front we managed through a change in Finance Ministers, the threat of a ratings downgrade and spiralling GDP figures. The interest rates being at their highest in 10 years. Cash seemed to be the asset class of choice considering the volatility in the Bond and Equity markets. Having said that the best performing asset class was Bonds, according to the ALBI TR ZAR at 15.42%. Property was the next best performer at 10.2%
Going forward we still face certain issues such as the Euro zone elections, the actual roll out and impact of Brexit, seemingly in March, and the threat from our Government regarding a cabinet re-shuffle. Who would have thought that in January 2017 we look at the pound being 35% and a Euro 12% weaker against the South African Rand than a year ago. The dollar, it will seem initially took a downward turn after the Trump win but quickly recovered to turn positive within hours. The South African Rand recovered against the dollar albeit it was making up the ground it lost to the Nenegate saga.
Political uncertainty and our Labour Laws still prohibitive and in some circumstances archaic are the two threatening issues to the growth of the South African economy. “Fees must Fall” process has been badly managed by government and will weigh heavily on the 2017 budget. Although we anticipate an increase in economic activity this year our expectation of the markets are still muted.
On a positive note we welcome the rains that have fallen and brought relief too many areas of our country in desperate need of water. If Trump brings back manufacturing to the American economy, it could have a positive impact on our commodity prices, as demand will rule the price, perhaps good competition to China who have been buying our resources at very reduced levels for years.
We look forward to the year with inspiration and the promise to form closer bonds with you our valued clients. We will strive to under promise and over deliver and make your financial security a reality. Keeping pace with your changing life, needs and requirements are important factors for us to keep you up to date and in touch with the latest and best products to suit your lifestyle.
Thank you for your custom, loyalty and support, without you Financial Junction will not have achieved the heights we have reached to keep your financial management stronger, healthier and in line with your growth expectations.
Have a sensational 2017.
Hubert, Lynn and Rod and the FJI Team