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The South African economy is very fragile. Our country is in the spotlight of foreign investors, and we run the real risk of a further credit risk downgrade. At times like this, faced with a reality like this, it is often easy to discount the positives which, if you care to look for them, are not all that difficult to find.
  • Last year, President Zuma laughed at people who brought up Nkandla. This year, he is looking to settle the account
  • In the past, people couldn’t question the relationship with the Gupta’s. Now, even the ANC are against this relationship.
  • Blade Nzimande said in October that he will not change our Education Fees. In December he apologised, and the fees were reduced.
  • The SONA, in the past, was typically a look to the future . This time, the SONA is saying “Houston, we have a problem.” Our countries’ leaders have realised that we are in crisis, which is the first step to our redemption.
  • This week’s budget speech was a bit of a damp squib, but it is another move in the right direction
The state of our nation:
Actually, this is Greece, not South Africa. Bad things happen all over the world.
 
South Africa’s split personality:
  • In 1993, non-black South Africans believed that Civil War was breaking out, and that Mandela was going to bring South Africa to ruin. People fled the country.
  • In 1994, we had a peaceful democratic election.
  • In Easter of 2010, Eugene Terrablanche was murdered by 2 employees. Again, people believed Civil war would break out.
  • 8 weeks later, the Blue Bulls played rugby in Soweto and white people were found drinking in Shebeens. The papers spoke about the greatness of our country.
  • In June 2010, a successful world cup was hosted, and South Africans believed in their country.
  • In 2013, we saw tragedy in Marikana. New civil war fears emerged. The voice of the people was again heard.
  • In December 2015 – President Zuma fired Finance Minister Nene. People believed that our economy was going to collapse. Yes, the Rand did fall. But it has stabilised, and our economy is doing far better than expected.
  • Right now, we have a Finance Minister who has no strings attached to him. He has been given a mandate to save our country. With a bit of luck, no-one, not even the president, will be caught over-spending.
What does 2016 hold?
  • Its going to be a tough year. But, when the sale is on, it is time to buy.
  • Investing for good returns is not about the short term. Its about knowing your strategy, and sticking to it.
  • Now is not the time to bail out. The fall has happened. History has shown that chasing markets in most occasions results in far less growth than sticking to a plan.
  • Sticking to your plan will allow you to embrace the power of compounded investment returns.
Summary:

Our country has had its fair share of trouble over the past few years, and our economy has borne the brunt of it. But, history is full of surprises. Let’s hope the signs of change mentioned above manifest, and that our country and economy flourish as a result.

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