South African Market:
Notable themes impacting the South African market in July were the continued weakness of the Rand, as well as the ongoing rout in the resources sector which has lost 40% in the last year. Resources shares are testing the resolve of the value investors who see long term value in the sector, but are suffering underperformance whilst waiting for the sector to turn. Whilst this may well turn out to be a generational investment opportunity, it is another reminder of how difficult it can be to be a contrarian investor. The property sector and bonds returned to winning ways in June, after a few months of negative returns, although we note that bonds have still underperformed cash over the last 12 months.
MARKET UPDATE NOVEMBER 2015
South African Market:
Notable themes impacting the South African market in July were the continued weakness of the Rand, as well as the ongoing rout in the resources sector which has lost 40% in the last year. Resources shares are testing the resolve of the value investors who see long term value in the sector, but are suffering underperformance whilst waiting for the sector to turn. Whilst this may well turn out to be a generational investment opportunity, it is another reminder of how difficult it can be to be a contrarian investor. The property sector and bonds returned to winning ways in June, after a few months of negative returns, although we note that bonds have still underperformed cash over the last 12 months.