JSE returns should match foreign equities’ in next five years, says Investec
After heavy pressure on local assets in 2018, Investec is optimistic an improving local and global picture bodes well for the all share
SA's largest asset-manager, Investec, has an upbeat assessment of the JSE’s prospects for the next five years, expecting returns on the local bourse to match those of foreign equities during the period. The prospect of an end to the US-China trade war, the receding chance of the UK crashing out of the EU without a deal, as well as continued global economic growth are reasons emerging-market equities could take the lead in the medium term, Investec Asset Management director Jeremy Gardiner said on Tuesday. Speaking at an Investec presentation in Sandton, Gardiner said SA’s domestic problems, such as Eskom’s debt burden, were now seemingly being taken seriously by the government. This was positive for SA, given that many of its emerging market peers had similar, if not worse, continuing domestic political battles, he said. The end to the US-China trade war, in particular, could be positive for riskier equities, having prompted severe selling pressure during 2018. “US President Donald ...
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