South Africa's 'cheap' stocks offer high returns for investors... or do they?
With the JSE underperforming global equity markets, SA Inc. looks decidedly cheap, argues Marc Hasenfuss of Financial Mail.
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The Money Show's Bruce Whitfield is joined by Marc Hasenfuss, Editor-at-large at Financial Mail, who weighs the risks and rewards in a market poised for potential liftoff.
Listen to the full interview below.
The lagging Johannesburg Stock Exchange could be the market to bet on this year if investors have the pluck to take the risk.
Investors Monthly Editor Marc Hasenfuss has penned a piece called 'The risks and rewards of marked-down SA Inc stocks' in which he looks at the merit of backing local stocks.
He says a lot of nervousness is priced into the current low share prices.
"The valuations, on paper, are kid-in-a-candy-store type stuff on one side [but]... it's a very, very delicate junction we're at at..."
- Marc Hasenfuss, Editor-at-large - Financial Mail
For brave punters willing to place bets ahead of the election; top investors expect potential gains of between 15% and 18%.
"Everyday there's a different forecast. I'm not sure what to make of it... I don't think anyone can make an authoratative call on it."
- Marc Hasenfuss, Editor-at-large - Financial Mail
There has been a lot of talk about the money to be made in decidedly marked-down SA Inc. stocks.
Hasenfuss says the question is about risk versus possible return.
"A lot of people are saying, if you stuck to your convictions now, you could make a very good return... if you're prepared to take the risk, that's the big question."
- Marc Hasenfuss, Editor-at-large - Financial Mail
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Scroll up to the audio player to listen to the interview.