Politics-proofing your portfolio – part 2

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Politics-proofing your portfolio – part 2

Published Date: 2019-05-24 | Source: INCE|Community | Author: Mark Ingham

Politics-proofing your portfolio – part 2

Ahead of the election, the stock market, foreign exchange market, and bond market were relatively calm and post the election there has been further relative calm, with fundamentals back in the frame. These three key markets are interconnected, with immediate price signals.

The ANC has a diminished working majority at a national level of 57.5%. The incumbent party has the mandate to pursue its policies without recourse to the coalition. It also gives Cyril Ramaphosa a platform to hopefully entrench a moderate and pragmatic policy framework and implementation, accelerate reform, and steadily eliminate corrupt factions. The President also has the support of the trade unions. Leftist and radical voices of disruption are likely to remain on the fringe.

Ingham Analytics observes that investors should be mindful that this more supportive backdrop is not necessarily a glide path to stellar JSE returns in the short term. But hope is a powerful motivator and the market has the potential to price in better days ahead. They point to institutional strengths, including free and fair elections that were well handled, with everyone accepting the result and moving on, and the fact that South Africa has deep capital markets with extensive foreign participation.

Ingham Analytics provides investors with insights on investing internationally and on the JSE, also giving the top ten JSE stocks that they see as being among the better politics-proofing alternatives. This Insight note is a must read click here to download the research note: Politics-proofing your portfolio - part 2.

Ingham Analytics delivers institutional quality research to shareholders who need to know more.



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