SA Positive in Covid 19 Times
I have always said that South Africa has the luck of the devil!
For example, Nelson Mandela was not always the person we got to know. In the 80’s he was a staunch communist who promised to nationalise all the companies on the JSE, when he came to power. Time was running out for South Africa. The economy was run down and embargoes were mounting up, pressurising South Africa to lift the ban on the ANC and to have free and fair elections.
Then the Berlin Wall fell, USSR imploded and communism failed! The rest is history. Mandela was released in February 1990 and between then and the elections in 1994, Mandela had to rethink his political stance.
Hence, the Rugby world cup in 1995 and not communism. (And we won!)
In the last year or two there has been calls by certain political parties to nationalise land without compensation. First it was the EFF, then the ANC decided to hijack the idea from the EFF! Fortunately the ANC has made it a long and complicated affair and with COVID 19 it has been delayed further.
Recently, in September 2020, the Zimbabwean Government caused quite a stir in Southern African politics. “Bring back the white farmers! We will give your land back! We will compensate you! We need you!!” Unfortunately not many, if any, have heeded the call due to their circumstances and scepticism of being able to make a go of it, with the way Zimbabwe is at present. But even so, quite a statement to make, causing a few ANC delegates to fly to Zimbabwe, to enquire what was going on!
Now, in October 2020, we are beginning to see real justice in corruption cases. Still slow and only a start, but a start all the same. Even Jacob Zuma is starting to feel the heat of the law. We may see some improvement in the municipalities and government although I wouldn’t hold my breath quite yet. The VBS saga should be interesting.
In many ways the internet and social media has been a great source of information and entertainment but also a source of misinformation either by ignorance or by design.
Anyone can post information on the internet and social media, just look at Wikipedia – you often see articles being quite recently updated. It costs nothing to post information. I tell my son that books and magazines are more reliable as there has to be commitment and cost to print information, which once in print can’t be changed nor recalled.
Covid 19 has been a controversial event. In my opinion, the press has done us no favours. The press has put the fear of life into every one. Covid measures taken by some authorities around the world have caused deaths and destruction of sizable parts of the economies without a shot being fired or bomb being dropped!
So many things on many different media platforms have been said about the virus that one is hard pressed to understand what is really going on.
For most people the symptoms are mild and in most children, almost a non event. The press highlights the cases where there are complications, particularly young and fit people who die for no reason but for Covid 19. In one retirement home all twelve patients in the frail care section contracted the virus, sadly, two of them succumb to the virus who perhaps could have died from old age.
How’s this for a proposed statistic? Some people say that you have a better chance of being killed by a South African minibus taxi than dying from Covid 19!
Having said all the above about Covid 19, South Africa has fared better than most countries amidst the pandemic and we can report that, in general, our portfolios have navigated these difficult markets quite well.
South Africa may not be such a bad place to live after all!! Have a good week.
All the Best,
Nick Russell
Certified Financial Planner CFP®
Please note: This article does not constitute advice