27 May 2022

Using Inflation to boost investments

Submitted by: Tony Seifart

Johannesburg - Global economies are facing stiff backpressure as the COVID pandemic turns endemic in more established developed countries.

“While the official inflation rate in South Africa is expected to stabilise at around 4.5%, it’s undeniable that the cost of living has increased significantly in South Africa. The Energy Crisis at Eskom is worsening and an increase of 9% in the electricity price at the beginning of July will add to the current consumer strain. This is on top of record fuel prices, which threatens to breach the R26/litre level by June,” says Jack Edwards, the Marketing Manager for CAPEX.COM in South Africa.

“Worldwide inflation rates, particularly in the US, UK, Germany, and Australia are a cause of concern and could affect the inflation rates in the latter half of 2022. This will require close monitoring by the Monetary Policy Committee of the SA Reserve Bank.

“You can’t pin down the cause of the inflation to a single event. With global stock shortages, shipping problems, excess cash after lockdowns, all these factors play a role in inflation in the US, UK, Germany, France,” he continues.

The US is being battered by inflation with high prices at the pump eating into disposable income. China’s lockdowns of mature industrial cities have also made manufacturers cautious for the short- to medium-term.

“It’s not all doom and gloom for the investor, though,” says Edwards. “Traders can still see good returns on investments, often beating inflation. We’re very optimistic about the future.”

Geopolitical uncertainties, higher gas and oil prices, and a stifled production line can create a myriad of opportunities to the savvy investor.

“It’s important not to get caught up and lost as the global economy starts to right itself after a turbulent two and a half years. Investors need to keep to their investment strategies. Avoid knee-jerk reactions and keep steady to your plan,” says Edwards.

South Africans shouldn’t feel left out of the market either. CAPEX.com allows South Africans to open free accounts on their international portal, which includes an extensive online Trading Academy.

Markets will still be volatile for the foreseeable future, but this shouldn’t discourage people at considering trading as a part of their asset portfolio.

You can open your free account at https://za.capex.com and get started with as little as $50 (R800). 

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About CAPEX.com
CAPEX.com is a leading global trading platform providing its users with expert insights, tools, and resources to make markets accessible to a worldwide audience and offering a tailor-made trading experience. Its professional trading platforms, robust technological infrastructure, and transparent trading conditions have propelled it as one of the most respectable brokers on the international stage.

Anchored by a global presence and regional expertise, CAPEX.com holds operating licenses from the South African Financial Sector Conduct Authority (FSCA), Cyprus Securities and Exchange Commission, Abu Dhabi Global Market Financial Services Regulatory Authority, the Financial Services Authority (FSA) in Seychelles.

ZA.CAPEX.COM is operated under license in South Africa by JME Financial Services (Pty) Ltd, an authorised Financial Services Provider and regulated by the FSCA (License no. 37166).

Visit www.capex.com for more details.

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