A DEBATABLE MOVE
A bunch of mixed construction results have been hitting the JSE Sens with most local companies moving into the rest of Africa or Australia to cover for stressed local operations. Australia, however, worries me. It is a resourcebased economy and is no longer f lying as it once was when commodities were booming, leaving many of these construction companies well entrenched, but in a market that now looks very similar to South Africa. Construction remains a sector that I am staying away from and the cyclical nature of the sector is such that I never want to invest in it. Sure, there will be another boom in the share prices but the first question that we need to be asking is when exactly will this be. The second is, will we manage to exit at the right time?
I have no idea when this will be and we, more than likely, won’t exit at the right time.
Hence I am staying away.