MARKETS
Stock rally raises hopes that storm may be over
But SA’s dismal economic outlook leaves clouds still hovering on horizon
The JSE pulled back from the brink this week, with the all share index managing to finish higher for the first time in five weeks, raising hopes that the storm that has swept through broader global markets since the beginning of October may have passed. But share markets are volatile and unpredictable, especially in the short term, making it tough to tell if the recent round of heavy selling has run its course. Even so, history shows that shares trend higher as an asset class in the long term. With a total market value of R13-trillion, the JSE is vulnerable to a plethora of factors that determine its path and, ultimately, the returns to investors. "The reality is that panicking out of the market simply locks in your investment return and it could mean that paper losses are converted into actual losses," said Craig Pheiffer, chief investment strategist at Absa Stockbrokers & Portfolio Management. "Equity markets are volatile and that's exactly the characteristic that investors want t...
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