Where to Invest in 2022?

Where to Invest in 2022? is a really good question as all we can be certain of is constant change in our fast-moving world. Almost two years into the pandemic, and still it continues to affect every aspect of life in every country on the planet, and that includes financial markets. And while the South African economy and the Johannesburg Stock Exchange continue to struggle, economies throughout the world are beginning to recover from the effects of Covid-19. Which brings us to an important question heading into another new year: where to invest in 2022 – in South Africa or offshore?

The wealthiest South Africans have been doing more of the latter throughout the pandemic, according to data and the experts who guide their finances. But what of the average South African investor? The man or woman who is – very sensibly – including, or considering including formal investment as a way to help them save for retirement – or another big life goal? That is what we are going to take a closer look at here.

Yes, You Can Invest Offshore

The fact that many South Africans do not even know that they can invest offshore still surprises us. We do not think it is because they are not financially savvy, but because for decades the idea of offshore investment has been linked in many people’s minds with the ultra-wealthy, those who live a globe-trotting, luxurious lifestyle and is therefore not for the ‘average person.

However, the fact is that you can invest as little as R500 in an offshore asset. With a little additional cash, you can invest in a global ETF (exchange-traded fund). Understanding what you are investing in is more important than the price though, as is understanding the best way to build a balanced investment portfolio in general.

Where to Invest in 2022?

The Growth Gap

Why, in 2022, do some investment experts consider it would be a wise move to look to overseas investments for some of the best opportunities?

The JSE is the world’s 20th largest stock exchange. But smaller stock exchanges, such as those in Tehran and Taiwan, have surpassed us. Since 2000, South Africa has lost 250 listed companies. There are nearly as many listings currently as there were in 1994. When it comes to emerging markets, the JSE is dead last. South Africa is now seeing little meaningful growth, though there are hopes that this may change eventually.

Eventually is not always extremely helpful for those looking to build wealth to retire on, however, especially if that time will be coming in the next decade or so. Some domestic investment can be wise – a diversified portfolio of investments is something financial experts’ advise – but looking to other countries may be the way to go in 2022.

Where to Invest in 2022?

What are the Best Offshore Investments in 2022?

Not all companies have suffered as a result of the pandemic, and the pandemic itself has accelerated the growth of some industries specifically. These include:

Genomics.
Cybersecurity.
Social media.
Electric cars.
Cloud computing.
Robotics and automation.
Digital entertainment, like Netflix and online gaming.
Telehealth

Cloud computing and social media have seen especially large gains during the pandemic, thanks to so many people working from home and even big, seemingly unrelated to the industry global concerns like Amazon and Meta (formerly Facebook)

Understanding what you are investing in is important, especially offshore investment, research, and due diligence is paramount before making a move. Like any investment, in South Africa or offshore, involves risk not doing your homework first can be a huge mistake.

This is where working with an experienced financial advisor comes in. Not only can they help you find the best offshore (and domestic) investment opportunities they will also be able to guide you through the ins and outs of first-time offshore investing and wealth-building strategies in general.

Heading into 2022 the world is still a very volatile place and even the ‘best’ psychics are having a tough time predicting what the New Year might hold! However, anything you can do yourself to help secure a better financial future will be beneficial, and in 2022 offshore investment may be just that.

Before making any decisions call us and talk to one of our professional and independent advisors for best advice.