US of­fers value


The quan­ti­ta­tive eas­ing in the US has been do­ing its job and we are see­ing un­em­ploy­ment slowly mov­ing lower while (mod­est) growth is back. The fis­cal cliff is still a con­cern but law mak­ers will find a so­lu­tion of sorts.

With this in mind, US eq­ui­ties are of­fer­ing value with a num­ber of lo­cal as­set man­agers sug­gest­ing that one of the best in­vest­ment des­ti­na­tions for 2013 is go­ing to be the US. The eas­i­est way for a lo­cal in­vestor to gain US ex­po­sure is via the Deutsche Bank ex­change­traded Fund DBXUS.

This ETF tracks the MSCI USA In­dex with about 600 stocks con­tained in the in­dex it is a great broad ETF that one can buy on the JSE in rand while get­ting pure US and US$ ex­po­sure. The one risk (aside from US eq­uity risk) is cur­rency. The in­dex is ini­tially priced in US$ be­fore be­ing con­verted to rand so any rand strength will take some of the shine off the ETF and while I ex­pect rand strength in 2013 US mar­kets should per­form strongly enough to off­set that risk.

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