ALWYN VAN DER MERWE: Global equities come out on top in 2019 investing
Next year will not be quite as bountiful and valuation will be even more crucial
The past year has been one of significant – mainly positive – surprises for equity investors in general, despite SA shares lagging global peers. Contrary to expectation, 2019 has seen a more than 20% total return in global equities, while positive real returns on the local front have also calmed investor nerves.
It’s clear that while political uncertainty tends to result in volatility, it doesn’t dictate investment performance over time. A word of caution, however: the good run on the global equity markets may not be repeated in 2020 — investors may be underwhelmed by earnings growth and though not in bubble territory, valuation levels are becoming increasingly elevated...
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