SA investors’ addiction to equity has come at the price of growing unemployment and income inequalityGlobally, stock markets are reported to have lost more than $13-trillion dollars over thepast month. SA was not spared. On March 12 and 13 the JSE dropped by 10%, the biggest single fall in the JSEThe all share index has fallen by more than R2.
With this, an increased emphasis on investing in equity with quick and easy returns became the name of the game. This is, in fact, investment in “financial capital”, a form of capital without any links to the real economy and production, which has given us speculative bubbles, which, when they burst, wreak economic havoc.
For the past four decades, investing in financial capital has been very profitable for corporations, more so than in productive or real capital. This incentivised greater and greater levels of investment in financial capital, globally and in SA.grown four-times the size of the world’s GDP The SA stock market is similarly overvalued. A stock market that’s valued at more than 115% to GDP is overvalued according to the Buffett indicator — a measure of the size of a country’s stock market as a percentage of the country’s GDP — named after multi-billionaire Warren Buffett. In December 2019, the JSE was valued at 343%-to-GDP, making it one of the most overvalued stock markets in the world.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
SA mines to close for three weeks in Covid-19 battleMines say stringent measures are in place to protect employees from the coronavirus In these times, laboratories need A-Grade phosphates, or P²O⁵ and phosphoric acids. Will mines that produce such close as well? P²O⁵ is used in almost every consumable including in highlight 'MEDICINE'... Will such mines close as well? So the coal mines will operate
Source: BDliveSA - 🏆 12. / 63 Read more »
Source: mailandguardian - 🏆 2. / 92 Read more »
Even a lockdown won’t save SA if it’s done without proper communicationAbove all else, SA’s battle against Covid-19 will be won or lost on the public information front. It is ONLY prayer to God Almighty of Heaven that will help this country. President Ramaphosa must swallow his pride and admit he has no solution. God is ready to help this nation. mpho_pitsi_SA Why do you like to be the prophets of doom
Source: TimesLIVE - 🏆 28. / 59 Read more »
Beuran Hendricks on new list of Cricket SA contracted players, Faf also in the mixLions left-arm seamer Beuran Hendricks has been rewarded with a lucrative Cricket South Africa (CSA) national contract following his stellar Test debut for the Proteas in January.
Source: TimesLIVE - 🏆 28. / 59 Read more »
‘Up to 1-million at risk of Covid-19 in SA in 40 days’Government needs to take drastic action to avoid the country reaching a tipping point of 100 locally acquired cases, according to a team of researchers at Wits university As we enforce social distancing, the current pandemic's curve will be flatter. CannonAssets SA can get a head start, we've already seen the what's it done for the rest of the western countries... flatten the curve, stay home
Source: BDliveSA - 🏆 12. / 63 Read more »
Source: dailymaverick - 🏆 3. / 84 Read more »