Tuesday, May 11, 2010

Investment options in SA’s markets

SHOOT: I believe we'll see good returns in resources, but there's a caveat. Overall, all markets are turning down, and winding down. However, demand for energy will always lead demand destructive forces causing economic contraction - that's macroeconomic. So if you speculate intuitively you can expect energy stocks to climb temporarily before they fall [further than they climbed] before climbing again - as I say, on a general downward trend. But energy from here on out leads the market.
clipped from www.moneyweb.co.za

From 2003 to 2008, we saw staggering growth on the JSE Securities Exchange, which is unlikely to be repeated in the near term:

All Share:             +337%
Resources:          +412%
Small Caps:         +554%
Property:             +358%

With these asset classes all currently overpriced, where should investors place their assets?

We believe that there are two interesting options at present: preference shares and inflation-linked bonds.

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