Opportunities exist amid doom and gloom
Alida de Beer
Chrisley Botha, regional investment specialist at PSG Wealth, encouraged members of the George Business Chamber to have a positive mindset in the current tough times.
Rather than focusing on factors such as politics that cannot be controlled, one should look out for opportunities that still exist amid the doom and gloom, said Botha. She was the guest speaker at the Chamber's postbudget review breakfast held at Augusta
Grill on Thursday last week.
Giving an outline of the budget, Botha said the huge deficit cannot be ignored, but that underneath there are some positives, such as government's intention to improve systems for tax collection rather than hiking income tax rates.
A low and stable inflation rate is another helpful factor in the dismal economic climate. Although economic growth in South Africa has been flat over the past four years, there is still money to be made even if the returns are not double digit.
With a Thomson Reuters consensus estimate of 25% growth in the index this year, Botha's advice was to not exit the market, but to rather invest now. Look out for funds that have given consistent returns over the long term, know the risks that you are including in your portfolio, shop for value for money, and stick to the plan in the midst of the volatility.