Why it's not favourable to invest in SA now

Johannesburg - Think about investing overseas for the next six months and after that of investing in people, businesses and management that you trust instead of investing in paper.

This is according to SAXO Bank chief economist Steen Jakobsen, who cautioned investors to guard themselves against inflation.

“The fact that the mines are restructuring is the ultimate call to protect you against inflation.”

“Everyone will tell you right now that there are no alternatives to investing in the stock market”, said Jakobsen.

However, he said, returns over the next five to six years will not be very big given how much the stock market had already climbed.
 
“So my approach right now is to have a huge chunk of my capital in what I call the preservation of capital in fixed-income products across the board.

“(There's also) the potential to achieve a 20% to 30% return simply by going offshore.”

Watch the interview to find out why he advises against investing in South Africa over the next 12 months.


 
 - Fin24

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