Arthur Kamp, who has been an investment economist at Sanlam since 2005, is able to provide some guidance on sifting out the economic data wheat from the chaff provided by the ongoing political theatre, which threatens to create so much noise in social media that it drowns out important and vital data and possible tipping points.
“Essentially, when there is uncertainty in the market around the outcomes of economic policy it can cause a lot of volatility in asset prices. So, the key thing is to keep an eye on those long-term values,” Kamp said.
“Firstly, my job is to watch world events, in particular those events that have an impact on debt markets, which are events that drive interest rates, as interest rates are used in the valuations of all assets,” says Kamp.
He notes that the biggest driver of interest rates is having a large part of the population entering working age, a trend that has been much stronger in emerging markets.