Daily Investor has just published another thought provoking article regarding the decline of the JSE and the knock on effect for fund managers. This is why alternative investments are being turned to for financial growth and long term security.
Private Debt, where borrowers source lending from organisations other than the banks, is growing. I have previously introduced Private Debt as a growing asset class. It is currently worth US$1.5 trillion and this is expected to double over the next 5 years.
Stratton Morgan offer you a tried and tested private debt investment opportunity. The product has 26 years of experience and zero loss to any of the 3500 clients. It offers strong returns and minimal risk.
The source of the decline in stock markets is a problem that’s exacerbated in SA, but it is a phenomenon experienced around the world. Some of the big investment advisers recommend diversifying into international markets, but they are also affected.
Daily Investor says, “The Johannesburg Stock Exchange is shrinking, significantly shallowing South Africa’s capital markets, which harms economic growth and limits the investment universe for local investors.
In its first Financial Stability Review of the year, the Reserve Bank warned about liquidity in Africa’s most developed financial market drying up.
It said that local capital markets have become shallower and less liquid over the past years, reducing the ability for borrowers and investors to diversify.
In particular, the government has come to dominate the local bond market, increasing its share of total outstanding bonds from 60% in 2008 to 81% in February.
The Reserve Bank warned that this has made local financial markets less resilient to external shocks and created a single common risk for all financial institutions.
Meanwhile, the JSE has experienced a spate of delistings in the past decade. The last year the number of companies on the exchange increased was 2015.
The exchange’s operator, JSE Ltd., explained that this is a global phenomenon. However, South Africa has been uniquely hard hit.” (Image courtesy of Daily Investor)
Alternative investments are those not involving shares or bonds. Stratton Morgan has a range of alternative assets with excellent track records and offer extremely secure environments to grow your wealth. For more information, contact us and we can discuss all the detail.
