SA households are recovering – and getting richer

[BusinessTech]

SA households are recovering – and getting richer

The latest Momentum/Unisa Household Wealth Index shows that the real net worth of South African households has grown from the end of 2015.

 

[skimread]

In USD terms we are lot poorer

 

[JStrike]

In USD terms we are lot poorer

Luckily we don't live in the USA.

And as the reference period used in the article is Q4 2015 - Q1 2016, the Rand appreciated against the Dollar, you are just plain wrong

 

[Chevron]

Luckily we don't live in the USA

Still shows we're losing purchasing power.

 

[JStrike]

Still shows we're losing purchasing power.

How so? During the reference period, the Rand got stronger against the Dollar.

And if we are looking at actual purchasing power, we would need to look at the rand vs the international dollar. And that hasn't shown the rand devaluing as far as I am aware

 

[alternate]

Yet everywhere you go there are signs in stores, resturants with price increases.

 

[Mike Hoxbig]

How so? During the reference period, the Rand got stronger against the Dollar.

And if we are looking at actual purchasing power, we would need to look at the rand vs the international dollar. And that hasn't shown the rand devaluing as far as I am aware

Not really. In October last year we were around 13 to the dollar. The rand has strengthened to pre-Nenegate levels, but is still overall weaker compared to the start of the 4th quarter of last year...

http://www.xe.com/currencycharts/?from=USD&to=ZAR&view=1Y

 

[ToxicBunny]

How so? During the reference period, the Rand got stronger against the Dollar.

And if we are looking at actual purchasing power, we would need to look at the rand vs the international dollar. And that hasn't shown the rand devaluing as far as I am aware

Stats are ultimately irrelevant in this discussion, even though they give a baseline.

I just have to look at myself, and all the people I work with and know... all the households in the Upper Middle Class segment are cutting back on luxuries because life is not affordable at those levels anymore.

 

[Nod]

We only get inflation matching increases if we perform "exceptional". The norm is to get well below inflation increases. Not sure how that equates to "recovering" ...

 

[freddster]

Can't only look at that reference data. On a year to year basis you have this picture. From R10.50 to R14.00+ What household got richer? Probably the fn Oppenheimers, Naspers shareholders, Ruperts, etc...

 

[JStrike]

Stats are ultimately irrelevant in this discussion, even though they give a baseline.

I just have to look at myself, and all the people I work with and know... all the households in the Upper Middle Class segment are cutting back on luxuries because life is not affordable at those levels anymore.

I most certainly haven't cut back on anything, neither has anyone in my family or circle of friends. And that is exactly why you don't use anecdotal evidence. You have to look at stats

 

[bokdrol]

It is the rise of the new middle class, which will be the saving of our country. let's hope.

 

[krycor]

I disagree.. most international goods have been updated with prices set in jan or march this year. Those prices will remain in place until they forced down by a provider taking taking risk on predicting rand outlook with supply order and then the existing ones will have to take some loss in order to keep up with market.. i.e. there is some loss in the system. <-- that loss doesn't just disappear.. someone takes a hit on their business i.e. perks, employee increases etc all hinge on this.

What will be fascinating to see is how auto and insurance industry react lets say dec 2016 if the rand is back below R13.50/USD as these hiked prices.. also next year if harvest is good, what happens with wheat & meat indusrtry. This reminds me of Eskom press statement saying they ready for Business in SA and can handle the 'full load'.. except, business is not ready to do business at this cost so industry activity will not be using as much energy from the grid.. fun times ahead as i reckon they will soon say they need industry to use more power or have to increase cost/kwh haha

 

[Slootvreter]

What kack is this? :erm: Oh, its BusinessTech

 

[Jola]

Stats are ultimately irrelevant in this discussion, even though they give a baseline.

I just have to look at myself, and all the people I work with and know... all the households in the Upper Middle Class segment are cutting back on luxuries because life is not affordable at those levels anymore.

That ^

The value of your investments, in USD, has dropped through the floor.

And just look at car prices, a Mazda 2 or Hyundai i20 is now well over R200k.

 

[JStrike]

That ^

The value of your investments, in USD, has dropped through the floor.

And just look at car prices, a Mazda 2 or Hyundai i20 is now well over R200k.

Not at all. My investments, in USD, did roughly the following

Listed Equity : 8%
Private Equity : 18%
Property : 9%
Gold : Not sure exactly. I think it has done fairly well

 

[mr_norris]

Without looking at economic stats, the struggle to stretch my salary is real. I do not feel like I'm getting richer or recovering at all. It's quite the opposite really.

 

[Jola]

On average, my investments with Allan Gray, Liberty Life and directly in the JSE dropped by about 30% in USD.

 

[JStrike]

On average, my investments with Allan Gray, Liberty Life and directly in the JSE dropped by about 30% in USD.

Yeah, my investments in Allan Grey (Actually in every fund I have) have dropped quite badly. They have had a terrible time.
Luckily it is only my RA's that are with fund managers.

 

[ToxicBunny]

I most certainly haven't cut back on anything, neither has anyone in my family or circle of friends. And that is exactly why you don't use anecdotal evidence. You have to look at stats

By your own posts I would hardly put you in the Upper Middle Class category.. You would be classed as wealthy.