The Wealth Perspective - Fourth Quarter 2023

Welcome to the latest edition of The Wealth Perspective

No one could have imagined that 2023 would pan out as it did. Indeed, unprecedented times have seemingly become the norm. Our energy crisis reached new lows in 2023 with the country experiencing stage six loadshedding more often than in any other year.  Trends in South Africa from 2019 to date show that although 2022 was a terrible year for loadshedding, 2023 has been far worse. The consequences of this can be seen in the latest corporate earnings reports, which reveal that many corporates experienced increased loadshedding costs, in conjunction with supply failures caused by the logistical issues at our ports and railways, resulting in increased job cut-related warnings.  

Future-proofing your investments

The negative sentiment that abounds makes for a very sombre festive season and a concerning outlook for the year ahead. Taking advantage of the available opportunities in times of drought is crucial as rains can come at any time. As we approach the end of the tax year, I encourage you to take advantage of the tax benefits available to you by investing in tax-efficient products and saving what you are able to. Haydn goes into more detail on the options available to you in his article.

There is reason for some festive cheer 

The year has not been characterised by bad news only - in spite of everything working against it, our economy is holding on and we have not entered a technical recession as yet. After nine consecutive months in decline, South Africa’s retail trade rose by 0.9% in September 2023, and the number of job seekers has also declined – albeit marginally. The resilience of the economy is testament to the determination of the people of our nation, and I’m continually impressed by our ability to continue to press on and push forward. This same resilience and character was also in evidence in another highlight of the year, namely the Springboks’ successful defence of their Rugby World Cup title and the elation we experienced in our country thereafter. 

In terms of our own business, we successfully launched our cash account product and our family pricing offering during 2023, which are designed to provide further benefits to clients, and will be particularly helpful at this time of year, when many are revisiting their financial plans. Speak to one of our qualified financial advisers who can guide you in constructing an appropriate plan for the needs of yourself and your family.

• A Word from our CIO - Adriaan Pask, Chief Investment Officer, PSG Wealth - Things you can do today to prepare for retirement tomorrow  
• Industry Views - Nirdev Desai, Head of Sales, PSG Wealth - Embrace the unpredictable
• Investing and trading - Wendy Myers, Head of Securities, PSG Wealth - Busting myths surrounding trading in shares 
• Estate Matters - Mariska Redelinghuys, Legal Specialist, PSG Wealth - Different breeds for different needs  
• Employee Benefits Insight - Robyn Laubscher, Advice and Product Specialist, PSG Wealth - Saving for a child’s retirement 
• Quarterly Insight - Haydn Johns, Head: PSG Life and Invest, PSG Wealth - Getting the most from your bonus