South African assets may be cheap, but that’s not a good enough reason not to invest offshore
By Mart Marie de Jongh, Certified Financial Planner at GraySwan and Gregoire Theron, Chief Investment Officer
The investment world’s fixation on global inflation and whether we are approaching the peak and heading towards a recession, has many investors sitting on cash, waiting for signals of a better market. Despite this, investing in South Africa presents a convincing opportunity.
In the South African Bond market, investors can yield more than 4% above South African inflation, one of the highest real yields compared to other developed and emerging markets. This provides South African investors the opportunity to receive an income well above inflation with a lot of risks already priced into the asset class.
South African equities and emerging market equities are also trading at very...