. The JSE is underperforming its emerging market counterparts, real house prices are falling and rolling blackouts are making the threat of a rating downgrade more imminent. Political and economic uncertainty is adding to that discomfort. The future looks bleak for those trying to grow or even just preserve their wealth in local markets.
More local money managers are advising South Africans to rather invest with their heads and not their hearts and consider taking a greater portion of their savings offshore. He adds that despite already being in a recession, South Africa is marching on with plans to expropriate land without compensation while carrying on with economic and industrial policy which will only make things worse for the country — potentially leading to further rating downgrades, a bailout and sustained high unemployment.Much of the advice we see out there does not reflect the reality of South Africa today.
the JSE being one of the worst-performing stock markets in the world over the past five to seven years, that a stronger offshore focus should become an obvious choice. The Regulation 28 offshore allocation limits for pension funds were increased from 25% to 30% and the allocation to African investments from 5% to 10% in 2018.