Pre-election policy paralysis makes foreign equities ‘more attractive than JSE’
European and Japanese equities are better placed right now while the outlook for SA remains cloudy, says asset manager Citadel
The biggest sell-off in SA equities since the outbreak of the global financial crisis a decade ago has not made them appealing to one of the country’s largest independent wealth managers because growth-boosting policies will likely be on hold until the elections. “At this stage, we view global equities as offering better prospects,” said Maarten Ackerman, chief economist and advisory partner at Citadel, which is part of Peregrine Group and manages about R50bn. He said the company preferred European and Japanese markets. The JSE all share lost 11.4% in 2018, the worst performance since 2008,according to Iress data, as stocks were held back by an economy that slipped into a recession and a global sell-off that saw the S&P 500 lose 6.2%, also the biggest drop in a decade. Local stocks have had a disappointing start to 2019, with the all share losing 1.47% by Monday's close. The outlook for the local economy remains clouded with analysts pessimistic that the government will take the nec...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.