At this point in our economic cycle most people are despondent about the economic outlook of our economy in the short term. With the events of the last couple of years, nobody can blame them. Making irrational decisions because of fear or despondency has seldom paid the desired dividends. If, however one looks at offshore investment as part of a rigorous diversified investment philosophy it makes good investment sense.
Our economy makes up roughly 0.5% of the world economy and fund managers have roughly 388 shares to choose from. Most shares outside the Top 100 is regarded as medium to small capitalization shares which means they are too small for most fund managers to invest in.
If your horizons are widened to include the world markets, there are thousands of top companies to choose from. If on the other hand we see that our Rand has steadily depreciated at a rate of roughly 6.38% per annum over the last 30 years (albeit not in a straight line, see graph below, green line is the long-term average)