More steam in that engine

The JSE bull run has not run out of steam just yet, according to the director of retail investing at STANLIB, Paul Hansen, although he does acknowledge the possibility of bouts of profit-taking, as experienced on Friday last week.

He points out that the JSE All Share Index is up 165% since its lows in April 2003 while total returns are up 190%. That said, we still see scope for equity upside with opportunities to buy into the corrections.

Some believe that if a market almost trebles in three years, it must be over-priced, but some calculations indicate that certain sectors and counters have yet to reach fair value; suggesting more growth to come, especially if a selective approach is taken.

Hansen adds that there are always risks; for instance, the international situation and the oil price. But barring some major unforeseen event, their view is that the bull market will remain intact.