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NVest Securities( Pty) Ltd NFB House, 42 Beach Road, Nahoon East London 5241 PO Box 8041, Nahoon 5210 Tel:( 043) 735-1270, Fax:( 043) 735-1337 Email: info @ nvestel. co. za www. nvestsecurities. co. za
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SENSIBLE ESTATE PLANNING
PLANTING THE SEEDS FOR A MARKET RALLY continued from page 15
BUSINESS SPENDING WILL BE THE BIGGEST DRIVER ON MARKET RETURNS----BUT WHEN?
An interest cut will not only increase disposable income further as consumers ' interest expense is reduced, lower rates may stimulate consumer credit expansion which is barely growing and has a greater multiplier effect on the economy.
The biggest missing piece that would drive GDP growth and provide a sustainable catalyst that will move the market to new levels is an increase in business investment. South African businesses certainly have enough cash sitting on the side lines waiting to invest, but they lack the confidence to pull the trigger on capital investments. Unfriendly business legislation and political uncertainty continue to be impediments to business investment. If we can somehow get Private Public Partnerships off the ground, we could be off to the races.
For now, we will have to be content with marginal drivers. sensible finance Mar17
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