Set for another
Since our edition last year, markets have been somewhat mixed. The four biggest stock markets recorded sharp losses in the first two months of this year for the first time in four years, as turmoil in emerging markets spread to the developed world.
The spreading gloom was prompted by a mass exodus from emerging markets, with investors pulling money out of them at a signif icant rate. Some $12.12bn f lowed out of equity markets in general during January and this included net selling of R25bn in South African equities by foreigners.
However, we covered considerable ground during the past month, meeting with leading analysts and fund managers, and came away encouraged with the vastly improved longer-term outlook. The fundamentals in most developed economies have improved significantly during the past year and economic indicators are stronger than they were six months ago.