SA equity prices fair
THE South African equity is priced around fair value to expensive, according to asset manager RE:CM’S investment outlook on the South African market.
“There are some pockets of attractive investment, specifically in the platinum industry and gaming sector in companies such as Amplats, Lonmin, Sun International and Tsogo Sun,” the company’s investment analyst Razeen Dinath said.
He warned investors to be wary of basing investment decisions too heavily on the plethora of economic data they were exposed to, such as GDP growth rates, inflation data, manufacturing and production numbers, etc.
Dinath said research had disproved the existence of a positive relationship between real economic growth and stock market returns.
Dinath argues that while profitable investment opportunities may exist in emerging markets, investors should not use economic growth as their sole premise when making an investment decision. — I-net Bridge