Guiding consumers since 2009

Will the elections affect the market?

By Staff Writer
The South African electorate has been voting in the government for the next five years. There has been a lot of talk about whether the expected next President of the Republic, Jacob Zuma, will be a good or bad choice if the ANC is re-elected, which is widely expected. In South Africa we vote for a party not an individual, which means that the party with the most votes gets to appoint the President. The results are not yet in, but it looks likely that the ANC will win. So what will the effects of the election be on the market?

 

  • Risk is already priced in
  • Rand not expected to be affected
  • Market could respond positively 

The best thing you can do is go on as usual and plan a budget.

These are the opinions of various commentators in the financial papers.

Fin24 looked at the factors in the market that may come in to play due to the election. Historically the market rallies and goes up after the elections before returning to the fundamental underlying levels it should be at. This means we may get a market bonus for a few months before the effects of the credit crunch start weighing the market down again. An economist interviewed in the article said ' we could be pleasantly surprised with the performance of the market after the election'.

Business Report had a look at the Rand and its current weakness and their interviewed experts were of the opinion that the weakness of the Rand at the moment was not related to the elections and they further said 'We can't, in fact, see the result having much influence'. Politicsweb noted that Trevor Manuel is expected to stay on after the election and this should go some way to quieting any jitters that may be felt as the new administration comes in. The article noted that as the votes started to be counted and results were slowly being published the Rand was generally steady.

 


 

Recent Articles

Featured What happens to your finances when the interest rate drops?

An interest rate cut simply means that the cost of borrowing is lower, and therefore cheaper. This is sometimes a tool used to encourage economic growth. But what does such a cut mean for your finances?

Raise a deposit for your house in 5 steps

If you’re a first-time home buyer, you could be lucky enough to be  approved for a 100% bond, but if you aren’t, a 10% deposit might be required. This  could be a daunting prospect.  However, a few financial tweaks to your lifestyle and spending habits could get you a foot in the property door and, once you’ve purchased a property, significantly reduce your long-term bond repayments.

Get personal with your finances – and tie the knot

As time passes, your financial products may not live up to your needs. Therefore, it’s important to take stock of what you’re paying for and adjust where necessary. We got in touch with financial advisers to find out how you can get your finances in order, and what you should do to ensure you’re financially stable.

Personal loan or business loan? The best way to finance your business

When starting your own business, you may have to rely on external funding. Perhaps you qualify for a personal loan, but would it be better to take out a business loan instead? We got in touch with a specialist to find out whether it’s best to take out a business loan or a personal loan to assist you with your ongoing business or start-up.

Deals

Cash Rewards up to 20% when you swipe your Absa Card at Spar

Price: Available on request
When: Daily
Where: Nationwide

The Royal Elephant Hotel Valentine's Day Special

Price: Available on request
When: 14 February 2020
Where: Centurion

Premier Hotels Vegan Dinner Special

Price: R225 per person
When: Monthly
Where: Nationwide