July 2009
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Economic update Consumers are feeling the pain of the economic downturn and despite aggressive interest rate cuts, retail sales continue to fall. The same despondency can be seen in the US although there are signs of life returning to US consumers. For over indebted South African households the increased savings rate and rapidly declining private credit extension are positive signs that a financially healthier consumer will emerge. You can read a review of how the global and local economies are faring in what appears to be a very tentative and turbulent recovery. Use savings wisely Homeowners may be finding that the 450 basis point rate this year so far has put some extra cash into their pockets. But with the Monetary Policy Committee not cutting rates further in June it is important that we make the most of our current savings to ensure our long term financial security. In the article Use the savings on your bond repayments wisely you will find some sound ideas on how to make the most of your savings to start building on a long term financial plan. Neelan Porthen, head of risk products at Liberty, talks about the importance of creating a long term strategy for your risk cover that will adapt and change to your needs in his article Creating a Flexible Plan. We have also included a brief guide on how best to invest your additional cash flow so that you are able to continue to build on your long term financial plan: Guide to Savings. Your feedback is important - talk to us! Thank you for the feedback we have received on these newsletters so far. Your comments and suggestions will help us to give you relevant information for planning and managing your finances. Please keep talking to us and telling us what you think! You can email your comments to [email protected] Kind regards Steven Braudo Chief Executive Officer: Liberty Insurance |
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Global economic review STANLIB economist, Kevin Lings, updates the Economic Crisis Monitor and for the first time since January some indicators have had to be revised downward. This is clear indication that the road to recovery will not be a smooth one. Weekly economic updates The Weekly Focus is a commentary on markets, economic and investments prepared by Kevin Lings and Melissa Dyer of STANLIB. You can read the latest developments every Tuesday by following the link on http://www.stanlib.com |
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Local economic review In the article, Consumers hit the Brakes, Liberty Life economist, Tendani Mantshimuli assess the health of the South African consumer as retail figures continue to deteriorate. |
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Use savings wisely |
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