2018 Investing Offshore - July 2018

2018 JULY: INVESTING OFFSHORE

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Investing offshore - July 2018

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Coronation Insights

Coronation Insights

The case for investing abroad remains strong. Despite an improvement in local consumer and business confidence following the ANC elective conference in December 2017, South African economic growth remains significantly below the average globally and it will take time for this renewed confidence to translate into real growth. Also, we expect the global economy will prove to be resilient to a return to positive real interest rates, and we continue to believe that a long-term allocation to markets outside of South Africa – regardless of current macro-economic conditions—can help protect investors against potential future currency shocks and other local risks.

We believe global equities will continue to fulfill a crucial role in protecting the purchasing power of investors over time. Still, international markets are expensive (especially compared to the depressed local market), and we believe careful, active investment is required.