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/ 30 July 2008

Inflation: What happened?

Normally, inflation data is reweighted every five years to factor in changes in consumer behaviour. As the economy grows and wages increase, spending on certain items such as food, electricity and petrol tend to decrease. This time, however, Statistics South Africa (Stats SA) is releasing the new inflation data six years after the last official […]

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/ 3 June 2008

Cut business costs to curb inflation

Globally the world has moved into a higher inflation environment and South Africa is no exception. However, interest rates can contain inflation only to a certain degree and, like chemotherapy, it has the potential to destroy what is good in an economy while trying to cure the illness, writes Maya Fisher-French.

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/ 9 May 2008

How to invest in Zimbabwe

Want to buy property or shares in Zimbabwe? Just bring along a bag of fertiliser or some cooking oil. Maybe it’s not quite that easy. But liberalisation of the economy has started and, as a country on its knees desperate for food and "strategic" goods, Zimbabwe has introduced a barter system in return for assets.

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/ 9 May 2008

Should you consolidate?

The latest slew of economic data suggests we might see a further rate hike. Some economists predict further interest rate hike of 100 basis points before we see the peak, bringing the prime lending rate to 16%. To add salt to our wounds, the high interest rates are likely to be around for a considerable length of time.

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/ 29 April 2008

Insurers violate credit policy

An investigation into the consumer credit insurance industry has found that remuneration by some insurers to motor dealerships and furniture retailers was in excess of the capped commissions stipulated in both the Short-Term and Long-Term Insurance Acts. It also found that there have been undesirable practices by intermediaries selling credit policies.

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/ 14 April 2008

Taking the insurance knock

The reality is that often a person who has been responsible for causing an accident changes his or her story when it comes time to claim. Because of the way the insurance industry operates, you might find that your insurer is not particularly helpful in resolving the issue.

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/ 8 April 2008

Under a debt weight

Consumers and small businesses are starting to collapse under a combination of higher interest rates, higher petrol prices and higher food prices. According to latest figures from Statistics SA, personal insolvencies increased by 58% last month compared with a year ago and civil debt judgements against companies jumped 41,2%. Liquidations for the first two months of the year increased by 6%.

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/ 20 March 2008

The balance-of-payments squeeze

South Africa’s financial services industry might be relatively unscathed by turmoil, but the flight of investors could bring a balance-of-payments crunch, writes Maya Fisher-French. This liquidity crisis has come at a critical time for the country, which is facing its own set of economic woes.

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/ 11 March 2008

The big split

Since September last year, divorcees have been able to receive a portion of their ex-spouse’s pension fund without waiting until retirement. But confusion about the taxation of these funds and whether divorce orders prior to the change in legislation qualify has meant that the payment has often not been made.

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/ 11 March 2008

Take a bet on South Africa

If political uncertainty, power cuts and the economic slowdown is making you stay out of the market; think again. You can still make money out of South African equities when the going gets tough. Last year, Investec launched RandHedge as part of its exchange-traded fund "Z-shares" range.

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/ 11 March 2008

How to cut your insurance premiums

The petrol price is now over R8, inflation is higher than anyone expected and looks ready to test 9%, and our mortgage repayments have gone through the roof. When trying to squeeze that little extra from your monthly budget, review your current insurance payments and look at ways to self-insure.

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/ 10 March 2008

Keep your savings to yourself

Ironically, the cost of running a broker force to encourage saving makes saving in a growth asset a poor investment. Investing money in a monthly unit trust could cost you as much at 7% a year after commission and management fees have been deducted, writes Maya Fisher-French.