Is A New Gilded Age Upon Us?
Finweek English|19 March 2020
Ascertaining whether a stock will rise further or remain under pressure for longer is a tricky exercise. There are those stocks, however, running wildly on the back of stellar growth.
Maarten Mittner
Is A New Gilded Age Upon Us?

In a force majeure event, such as the present coronavirus epidemic spreading worldwide, blind selling or buying in the market becomes the norm. But under more normal circumstances, when to buy and when to sell equities are important considerations based on calculated assessments.

There is a saying that a share can climb much higher than hoped. Or linger at the bottom far longer than feared.

A selling spree represents a correction, with buying opportunities. Some shares are usually overvalued. But many are also undervalued. Local property and retail shares could have been considered overvalued before the present dip. But now they almost certainly are in undervalued territory.

Platinum and gold shares have risen to overvalued levels, delivering growth of 200% over the past year in some respects, benefitting from higher commodity prices and a weaker rand. The same for the major global tech stocks, growing on average 50% from a year ago before the slump, just when it was thought that a correction then could have been imminent.

Inherent value is the real value of a company, usually linked to its net asset value. But companies rarely trade at these levels. Therefore, the price at which to buy or exit a share is fraught with difficulty and danger. But it is immensely important for future returns.

Esta historia es de la edición 19 March 2020 de Finweek English.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición 19 March 2020 de Finweek English.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE FINWEEK ENGLISHVer todo
THE HEALTH OF SA'S MEDICAL SCHEMES
Finweek English

THE HEALTH OF SA'S MEDICAL SCHEMES

As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.

time-read
7 minutos  |
5 November 2021
The effect of Gilbertson's departure
Finweek English

The effect of Gilbertson's departure

With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.

time-read
3 minutos  |
5 November 2021
Making money from music
Finweek English

Making money from music

Why investors are increasingly drawn to the music industry.

time-read
3 minutos  |
5 November 2021
Conviction is key
Finweek English

Conviction is key

Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.

time-read
5 minutos  |
5 November 2021
The post-pandemic toolkit
Finweek English

The post-pandemic toolkit

How CFOs can use technology to support growth.

time-read
4 minutos  |
5 November 2021
Big city living exodus
Finweek English

Big city living exodus

Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.

time-read
3 minutos  |
5 November 2021
Big compact, big value
Finweek English

Big compact, big value

Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.

time-read
3 minutos  |
5 November 2021
On barriers to entry
Finweek English

On barriers to entry

There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.

time-read
2 minutos  |
5 November 2021
Fear and greed in one index
Finweek English

Fear and greed in one index

To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.

time-read
3 minutos  |
5 November 2021
Africa's largest data centre facility coming soon
Finweek English

Africa's largest data centre facility coming soon

Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.

time-read
3 minutos  |
5 November 2021