Global investing: Interesting times? Oh yes
But global investors are surprisingly sanguine, writes Johann Barnard
The JSE hit a new high at the end of July, as did the Dow Jones in the US. These high-water marks are in contrast to a local economy technically in recession and under threat of further ratings agency downgrades. They feed into the US stock market bull run, now in its ninth year. What are investors to make of this when considering their asset allocations and portfolio structuring? Conventional wisdom dictates that some correction should be expected. But markets, politics and sentiment seem to be running counter to all we would normally expect. "If you look at various different measures of market sentiment that track how afraid or risk-averse investors are, those actually show that investors globally are feeling quite complacent," says Tamryn Lamb of Allan Gray Orbis. "There have been recently heightened levels of political uncertainty, but there are interesting dynamics happening on the global stage. What is more interesting to me than just living in interesting times is that that u...
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