Economic Snapshot
The Rise of Alternative Investments
46 REI MAGAZINE JULY
Economic Snapshot
Local Economic Indicators ( 30 June 2024 )
News
All-Share Index 30 June 2024 : + - 79,707
All-Share Index 30 June 2023 : + - 76,028
Market PE ratio : 13.8
USD / ZAR R18.05 /$
South Africa 10Y Government Bond yield : Current 10.21 %
( Data : Bloomberg ; SimplyWallSt ; Tradingeconomics .; Google Finance .)
The ANC losing their majority in the recent elections has paved the way for a Government of National Unity ( GNU ). After protracted negotiations the Cabinet posts have finally been decided , leading to a more bloated Cabinet than before , made up of a range of parties within the GNU . The party breakdown in terms of positions as follows : ANC ( 20 ), DA ( 6 ), IFP ( 2 ), PA ( 1 ), PAC ( 1 ), Good ( 1 ), FF +( 1 ). Whether this leads to a more efficient government only time will tell , despite a very low bar . According to the UN , the world economy is set to grow by 2.7 % in 2024 . The Proteas cricket team lost narrowly to India at the T20WC- their first ever showing in a cricket World Cup final . They had it within their grasp . Cooler heads may have resulted in South African men ’ s teams holding World Cups in two disciplines simultaneously .
The Rise of Alternative Investments
Well , well , well , the high inflationary environment over the last few years has seriously eroded the purchasing power of consumers around the globe . The muted returns achieved by investors in the traditional sector has not shown a clean pair of heels to the ever-present shadow of rising prices in recent years . So , where to now ? For many , the answer lies with alternative investments , which according to ( Pickel , 2023 ) “ are usually a way to get a direct stake in parts of the economy using more practical analysis . They also offer some distance from the markets ’ mood .” Importantly , they offer the potential for better returns .