For your convenience we’ve summarised Coronation’s latest market outlook and an interesting article by Investec Asset Management below. We rate Coronation as the top fundamental research asset manager and hence give their outlook for markets special attention. The Investec article is of interest given the turbulent times we are going through.
Coronation – House View Outlook
- Interest rates – to stay on hold for a while due to signs that growth has turned the corner.
- Inflation – CPI to fall further to around 4.5% later this year, barring a sharp weakening of the rand.
- Rand – to remain firm as global recovery gains traction, but expected to weaken towards year-end as the dollar continues to strengthen.
- Equity Markets – global equities are more attractive than local equities. They favour industrial shares with an emphasis on rand-hedge shares and remain underweight resources.
Investec – An Icy Black Swan? This is a market term for an event that no-one could predict. In this particular case the recent volcano in Iceland.
- Other events such as charges against Goldman Sachs and Greece’s debt problems are adding to a constant choppy 2010 market.
- Investec believes markets have run hard and only single digit returns are expected going forward.
- You should now be considering more offshore investments.
- The world cup is here and foreigners will see a far more developed country than perceived, which will hopefully attract more investment interest.
For more investor advice email us at info@investonline.co.za, phone us on 021-794-2469 or visit our Fund Manager’s Comments section on our website.