Investments: Dark cloud looming

PSG asset management assistant fund manager, Gustav Schulenburg, and chief investment officer, Greg Hopkins. PHOTO: SEITHATI SEMENOKANE

“There are dark clouds on the horizon.” These are the words of Greg Hopkins, chief investment officer at PSG Management. Hopkins was speaking at the PSG Outlook 2019, held at Tuscan Rose in Bloemfontein on Monday.

“This is evident from just reading the Sunday Times on a weekly basis to get an update of how dark the situation is at the moment. Our fiscal position is deteriorating on a regular basis, every day brings new revelations of allegations of corruption at a government level. GDP growth is low and we are sitting in the middle of an emerging market which is under considerable pressure at the moment, which is adding to the fear of what’s to come,” he added.

“When we look out into the investment horizon over the next couple of years, we think our biggest risk is not what happens in the coming elections or what happens in the economy.” Adding that they were, however, hopeful as the current environment of fear and uncertainty can provide opportunities for long-term investors.

In response to a question regarding the recent political climate as well as reports of the Reserve Bank mandate being changed, Hopkins said: “We don’t know what path we are going to take in the future. We do think that we’ve got some sensible people in charge at the moment, and someone like Tito Mboweni who was the boss of the Reserve Bank for many years understands the importance of the Reserve Bank. He’s a very outspoken individual. So we don’t actually know but we do know that there is a lot of fear.”

Assistant fund manager, Gustav Schulenburg, reviewed the investment environment and discussed available opportunities, especially in global markets.

In conclusion Hopkins advised brokers in attendance that there is a lot of risk out there and at the same time a lot of opportunities and that their biggest challenge will be trying to keep their clients invested. – Seithati Semenokane