WATCH: Stock picks — RMI and iShares MSCI Emerging Index Fund
Gerbrand Smit from NeFG Fund Management chose Rand Merchant Investments (RMI) as his stock pick of the day and Gary Booysen from Rand Swiss chose iShares MSCI Emerging Index Fund.
Smit said RMI had been underperforming over the past four years, “but if you look at the long-term tracker on them they certainly did not look bad in terms of the return on investments and at this massive discount. It’s a screaming buy at the moment.”
Booysen said it was shocking to see how much pressure emerging markets had been under. “With interest rates rising in the US, there has been a lot of money flowing into the US. The tech stock has absolutely taken off and, with the fear off trade wars, it has brought down that index significantly. This is a long-term macro call, if you looking at developed-market growth rates versus emerging-market growth rates the picture is clear over a 10-15 year period showing that you will do better with the emerging markets.”
Gerbrand Smit from NeFG Fund Management and Gary Booysen from Rand Swiss talk to Business Day TV about their stock picks of the day
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