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investments

Should we question the wisdom of investing in South African equities?

– Allan Gray investigates

Investors with exposure to equities in 2018 may have been subjected to a disappointing performance. As a result they may or might be considering the safe haven of cash, and other safer bets like money market or income funds.

In a recent media release, Duncan Artus and Nathan Wridgway from Allan Gray discuss the prospects for those who are daring enough to invest in equities and explain why it isn’t that daring after all when you’re in it for the long haul.

“While one cannot be sure what lies ahead, history strongly suggests that there is a higher probability of a positive rather than a negative outcome for equity investors who have a long-term investment horizon. The All Share Index has been valued lower before and companies’ profits are under pressure, but now does not appear to be the time to have 100% of your assets invested in rand-based money market funds,” Duncan Artus, portfolio manager at Allan Gray cautioned.

Click here to download the media release to access graphs that illustrate the excess returns from SA equities vs cash as well as a graph that looks at the periods of under-performance for SA equities relative to cash.

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