INVESTING
Picking the JSE’s winners for 2017
It’s not just politics that confounded the experts. Many of the JSE’s top guns came unstuck too. So what to do in 2017?
Well done! You took a punt on bashed-up resources stocks at the start of 2016, bought the resources index and made a handy return of around 25%. Wise move. Meanwhile, the go-go industrial darlings which seemed to have momentum stumbled en masse — the likes of Mediclinic, Mondi, Brait and British American Tobacco — hobbled by Brexit and a stronger rand. And, in the latter half of the year, frailty in Naspers and gold shares dragged the Top 40 about 5% down for the year. So what do the soothsayers predict for 2017? The hedge fund manager: Jean Pierre Verster, portfolio manager, Fairtree Capital "I would say that even with a year of flat share prices in general, most shares look closer to fair value for me," he says. "If your starting point is expensive, there’s a higher probability that your share prices will be lower; if your share prices are cheap, your return will be above average, but when your starting point is roughly average, anything could happen." Verster has two picks on the...
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