The value preservation quest


Piggy is concerned about the deteriorating macro-economic fundamentals in Zimbabwe and the impact it has on household incomes.  Here are some important facts that have to be considered;

  • The official inflation in Zimbabwe reached 765.6% in April from 676.4% in March 2020, amid a weak exchange rate and climate-induced food shortages which were aggravated by the coronavirus pandemic and lockdown measures;
  • The Old Mutual Implied Rate (OMIR) is currently at 117.4937 and the parallel market exchange rate is projected to end the year at c200. This will put y-o-y inflation at c2,000%;
  • GDP growth for Zimbabwe in 2020 is expected to be negative (-13.9%);
  • Most wages and salaries are in local currency (ZWL) and unemployment levels have breached 90%; and
  • Savings rates in Zimbabwe are estimated at below 5.0% of addressable population.

What does all this mean?

Individuals, households and businesses in Zimbabwe will have to look into ways of preserving value so as to avoid wealth destruction.  The norm is that in a hyperinflationary environment, investors turn to real assets such as commodities (gold) and property so as the hedge against inflation. However, in Zimbabwe, investment options are limited. Investors cannot execute direct gold purchases. In addition, the real estate market is priced in USD. This leaves the stock market as a feasible avenue to preserve the value of ZWL balances.

How does that the stock market really work?

There are two approaches on the stock market; Investing and Trading

There are NO Excuses…… Get involved on the Market!

An investment in education is critical when it comes to trading and investing on the markets. piggybankadvisor.com is focused on increasing the participation of individuals, households and businesses in local and global investment markets. The platform provides access to articles covering topics such as business, economics, stock market and forex trading, cryptocurrencies and general personal finance.  The following are links to introductory articles and E-Books that could be useful to beginners;

Cards or Shares

Stock Market Basics for Dummies I

Stock Market Basics for Dummies II

Stock Market Basics for Dummies III

Welcome on board the C-Trade Platform

Funding the C-Trade Account

The Time is Stock O Clock

Finding the Right Stock Broker

The power of holding shares

E-Books from Piggy

Make use of piggybankadvisor.com and educate yourself

Be part of the piggybankadvisor.com network by setting up or joining an existing WhatsApp-based Social Trading Group. Contact Piggy on + 263 78 358 4745

Here is a Video Clip on the Value Preservation Quest (VBF Thrive)

Investor 101

Inflation is ravaging our savings. Want to know about alternative investment strategies to preserve or even grow your savings in this volatile economy? Join us for an in-depth Investing 101 session with the Head of Research at Morgan & Co and the founder & CEO of piggybankadvisor.com, Mr Batanai Matsika

Posted by Thrive VBF on Monday, 8 June 2020
Previous Piggy’s Free FX Trading Classes
This is the most recent story.

No Comment

Leave a reply

Your email address will not be published. Required fields are marked *