South Africans generally tend to be negative – and for good reason. Our perception might be that circumstances are much better abroad. So what is the reality? We have major unrest in Europe; especially Greece could destabilize the region. Greece has a defunct government with no proper tax collection. With unemployment figures of roughly 27% in both Greece and Spain, what are the prospects for these Mediterranean governments? The US stock market returned roughly 2.1% per annum in dollar terms over the last 12 years (measured by the “Dow”; the 30 largest companies in the US). On the contrary our markets have flourished since 2000 (even in dollar terms over the same period). Apart from its high debt levels, America has many other problems from crime to immigration. Further, corruption amongst government officials in Russia and China is some of the highest in the world. Japan had negative economic growth for more than 30 years (the Nikkei dropped about 50% over the last 12 years) and is stuck with a severe demographic problem. There are too many old people! Recently international banks reinstituted debt claims against the Argentine government, which was responsible for a complete default and economic collapse between 1999 and 2002. We had Malema and now it is Nklandla & Co. There is certainly trouble abroad but we are not alone.
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