Local investors briefed on 2008 fate

2007-11-28 00:00

Analysts at the group recently held a briefing with a select group of industry stakeholders.

The group is an independent financial services group with about R1,3 billion worth of assets under management, focusing on, among other things, asset management, insurance broking, offshore products and financial and estate planning.

Michael Porter, the group’s chief investment officer, explained that 2008 will be characterised by a careful balancing act between commodities, inflation and interest rates. He added that while the inflation outlook remains on the upside, the South African Reserve Bank is concerned about high food inflation and the high growth in services inflation.

He said that the current interest rate cycle is relatively benign in comparison to cycles of the past.

He said the hikes will continue to be “felt” by the economy, adding that the higher rates have to some degree been offset by employment growth, social grants and policy stability.

Regarding commodity prices, he noted that they are likely to remain “stronger for longer” once they stabilise at a lower level.

While metal prices have dipped, he expects a resurgence given that metal inventories are still at record lows. “We have not had the supply response that we would have had in the previous cycles.”

While the SA 2008 economic outlook will be characterised by volatility, the growth cycle remains intact and shares remain the cheapest of all emerging markets.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.