Activ8 Update – July 2021
- July 15, 2021
- Posted by: Activ8 Capital Management
- Categories: Economy, Investment
Dear Activ8 Family
The past few days have been traumatic and full of worry especially for those of us living in KZN. We trust and pray that you and your families are safe and well. To witness the unfolding carnage in our homeland is tragic to say the least.
What do we know so far?
All indications point to this being a well-organized, well calculated insurrection by certain individual’s intent on using violent protests to propagate anti-government sentiment. By all accounts this insurrection was organized via social media, but it would appear that those planning it lost control. The blatant disregard for property and the rule of law quickly spun out of control.
The violence, burning and looting has been localized. KZN bore the brunt of the destruction although certain areas in Gauteng were severely affected. Indications are that with the deployment of the SANDF in the affected areas, calm and order is being quickly restored. However, there are severe supply chain constraints which is causing shortages of food and fuel, mainly affecting KZN.
This affair has not done our image any favours but economically speaking, the currency is once again strengthening after moving out to R 14-70. The JSE all share has largely been unaffected and local bond buying by foreigners has meant that the SA bond market remains strong. For those of us in KZN, who been through what we have, this seems very paradoxical.
Our Activ8 house view remains the same. We have bespoke investment strategies in place for all our clients and we strongly recommend that our clients stick to it. We recommend that our clients do not be swayed by short term, emotionally induced volatility and make irrational decisions. We continue to favour South African fixed income portfolio’s, however, from a long-term growth perspective, offshore markets remain our preferred destination.
At Activ8 we offer a number of quality offshore bespoke investment destinations. Speak to one of our advisors for more details. The offshore investment themes we continue to favour are the Tech revolution, Healthcare and Biotech, Emerging markets focused on China, South East Asia and India, and Clean and Renewable energy.
Due to the adoption of technology on our servicing model, we remained operationally capable throughout this period and remain open to service clients. Many thanks to our loyal and dedicated staff, who in these trying times have gone beyond the call of duty.
To those clients in KZN, stay safe and remain positive.
Please contact your Activ8 advisor with any needs that we can assist with.