CHRIS GILMOUR: Trajectory of large SA Inc stocks remains poor
Barring an escape by the economy from its low-growth, local investors are likely to still prefer US equities
I am often asked my opinion on the future direction of the JSE all share index (Alsi), to which I invariably reply that its best days are behind it and unless SA can once again experience some strong, sustained economic growth, it’s likely to stay that way. Though the US equity market is expensive, it has rewarded investors handsomely over the years and all other things being equal, that situation seems likely to prevail for the foreseeable future.
Since June 2014, when the Alsi was at 52,060, the market has largely gone sideways, punctuated on the upside by the “Ramaphoria-led” bounce in January 2018, and on the downside by the Covid-19 pandemic-induced sell-off in March 2020. ..
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.