The wheel spins as investors are split between SA and US

Business

The wheel spins as investors are split between SA and US

There’s a possibility that many investors will opt to rotate out of developed markets. Will they look to SA?

Chris Gilmour

As we start 2020, SA investors face a dilemma – do they stay with an overcooked US market or do they move back into the JSE?

The S&P 500 posted a phenomenal almost 30% rise in 2019. In contrast, the JSE All Share Index (Alsi) put in a 5% “Santa Claus” rally in December, pushing the index to close to 8.2% higher than when it started in 2019. Until then, it had languished at a tiny 3.3% rise until December 3.

The big movers were mining stocks, aided by the weak rand. Impala Platinum rose by 296%, Sibanye Gold by 243%, Northam Platinum by 187% and Anglo American Platinum by 140%. Of the top 10 performers on the JSE last year, only tightly held Cartrack, which rose by 68%, was a non-mining stock...

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