It has been a less than glamorous year for value stocks across global markets, not just on the JSE. Tech valuations have outshone those of sturdier, duller counters. But it’s baffling, given that the cost of money in the US has surged from zero to its current 5.5%. 

“If I said to you two years ago interest rates will go from zero to 5.5% in the US, I think everyone would have said the US stock market would go down a lot,” John Biccard, who manages Ninety One’s value fund, tells the FM. “All those tech shares would lose a lot of money. [But] interest rates rose and the valuation of the US market hasn’t come down. It’s one of the most incredible things I’ve ever seen.” ..

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