Personal Finance | South African bonds are offering interest rates more than double the rate of inflation. Is now the time to invest, and where are the opportunities?
South African bonds are offering interest rates more than double the rate of inflation. Is now the time to invest, and where are the opportunities?
“We think it would be incautious to load up with risk assets when the economic trajectory is still so speculative. In our flagship multi-asset fund, the hedges still guard against further market weakness. But many quality long-term investment opportunities are now suddenly attractively priced. We will not squander the opportunity, but we will deploy cash warily and wisely,” says Brian Arcese of Foord Asset Management.
“At these prices, we are selectively buying into companies that have a balance sheet that can withstand shocks and those with offshore assets,” says Lings, who cautions against buying into the wider market as there are still significant risks. Ackerman says we still face an extremely challenging time ahead: “Even if there is more pain to come in the near-term, there will definitely be more upside over the longer-term. The economy has been severely impacted by the Covid-19 coronavirus pandemic and national lockdown, but there is more than enough monetary support globally, in fact, the highest in global history.
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