After their worst performance in a decade in 2018, SA stocks should on average outperform global equities in the next five years, Old Mutual says. The JSE all share index relinquished 11% in 2018, its biggest loss since the 2008 global recession. According to the Swix index used by Old Mutual SA, equities were the second-worst-performing asset class, losing 8.5% and only underperformed by SA property, which lost 25.3%. Zain Wilson, portfolio manager at Old Mutual Investment Group, said SA equities have been expensive in the past five years, making it hard to deliver strong real returns, but the correction in 2018 has made valuations more attractive. “Valuation of SA equity is starting to look attractive for the first time in a long time, which is why we have increased our expected average long-term future returns for the next five years to 5.5% compared to 4.5% five years ago,” said Wilson during the launch of Old Mutual’s annual Long-term Perspectives review. The group’s MacroSolut...

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