In 2017, I discussed two expressions that applied so well to the stock market at the time. The first was that it does not help for you to only be on the right track, because if you stay there, you will still get hit by a train. During these last few months, we have experienced high tides on the stock exchange, which brings me to my second expression: a high tide lifts all boats. What these two expressions have in common, is that it is always great to be on the right track or in the proverbial boat when the tide is rising, but things tend to become a little more complicated when, like what happened in 2017, all boats do not float as well as they should.
In short, 2017 marked the last time the FTSE/JSE All Share Index (JSE) experienced 20% or more growth in a calendar year. The JSE grew by 21% in 2017, to be exact. But if you thought it was high tide all the way just by looking at these growth figures, you would have been on the wrong track. If you dug a little deeper, you would have discovered that Naspers* was responsible for 14 percentage points of the total 21% growth, and if you were invested in all JSE shares in 2017, 30% of your portfolio would have delivered negative returns.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
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.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
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.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
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.
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.
