The risks and rewards of marked-down SA Inc stocks
With the JSE underperforming global equity markets, SA Inc looks decidedly cheap. But that could spell danger — especially in the run-up to a tightly contested election and its potentially pivotal outcome
Local investors can hardly miss the now frequent rallying call that the JSE — after prolonged, and pronounced, underperformance — could be the market to bet on this year. Top investors are calling a potential gain of between 15% and 18% for brave punters willing to place bets ahead of the general election outcome at the end of this month.
If the theory holds that investors are buying the bottom, then there might be some merit in backing local stocks. Though it’s notoriously difficult to call the bottom of any market, there are some startling statistics to hand. The scoreboard shows the JSE has underperformed global equities by about 40% since the end of 2022. It also lags its emerging market peers...
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