Explore the Category
Victor von Reiche, Senior Investment Analyst at Cannon Asset Managers, looks at the chances of the JSE high fliers actually delivering on expectations.
Three ‘crocodile jaws’, or valuation divergences, that have developed in the markets over the past few years have resulted in attractive investment opportunities. These open ‘jaws’ include: the historically high global equity yields compared to historically low global bond yields; developed market valuations rising compared to emerging market valuations declining; and the wide divergence in performance in strong domestic industrial shares compared to their weaker financial and resources counterparts.
There are currently over 1,000 unit trusts from over 40 different managers on offer in South Africa, each of which fits into one of 35 official investment categories. Confronted with such a profusion of choice, where do you even begin when looking to invest?
Looking for a share that will fly over the long-term, say five years and more? Watch the CEO and his or her management team closely - they can have a material impact on the company’s share performance over the long-term.
The strongest deterrent against FSP compliance missteps is or should be: