net foreign purchases of equities (annual)- r52bn in 2009
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Net foreign purchases of equities (annual)- R52bn in 2009. Rbn. 1. Cash returns vs Inflation: 1999 – 2008 - PowerPoint PPT PresentationTRANSCRIPT
Net foreign purchases of equities (annual)- R52bn in
2009
1
-60
-50
-40
-30
-20
-10
0
10
20
30
40
50
60
70
80
2002
2003
2004
2005
2006
2007
2008
2009
Rbn
Cash returns vs Inflation: 1999 – 2008
The rule of 72 states (approximation) that at an inflation rate of 8.6%, the purchasing power of your cash would halve every 8.4 years rounded off - so the purchasing power of R200 000 would essentially be worth R100 000 after 8.4 years.
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 10 yr Avg
Cash Return 15.7 10.9 10.6 11.5 12.8 8.2 7.5 7.9 10.1 12.4 10.8
After tax return (Assume rate of 40%) 9.4 6.5 6.4 6.9 7.7 4.9 4.5 4.7 6 7.4 6.5
Inflation (CPI) 6.9 7.7 6.6 9.3 6.8 4.3 3.9 4.6 6.5 11.5 6.8
Real Return 2.5 -1.2 -0.2 -2.4 0.9 0.6 0.6 0.1 -0.5 -4.1 -0.3
Views Ahead
South Africa 2009 2010 2011 2012 2013 2014
GDP % -2.2 2.3 4.0 3.0 3.7 3.5
CPI % 7.3 6.4 6.2 7.4 6.3 7.0
Prime Interest % Average
11.90 11.20 12.50 15.00 14.00
12.00
$/R Average 8.60 9.40 10.00 10.85 11.60
12.30
€/R Average 11.70 13.20 13.70 14.50 15.75
17.00