South African investors are fixated on the rand exchange rate, so much so that our currency movements act as a barometer of our nation’s mood: when the rand is strong, happiness pervades, but if the rand depreciates, emotions head south at the same pace – or even faster.
Do you need to rethink your offshore investment exposure?
Investing in international markets is an important diversification building block to investors’ portfolios.
Taking money offshore is more than a bet against the government.
While there is definitely a case for investing offshore at the moment, it’s crucial to remember to keep a long-term view.
Greece and China have dominated financial headlines since March. With fear running high, we try to remain focused on the relationship between the price and value of individual securities.
Even though there isn’t much trading at low valuations, patient investors will be rewarded in future.
Global equity markets posted good returns in the second quarter, with a gain of 5.1% for the MSCI World Index (MSCI World) and 6.7% for the MSCI Emerging Markets Index (MSCI EM).
Despite the risks, emerging market equities offer good value in their own right.
Seema Dala highlights the trends that appear to be increasingly problematic, and outlines how Orbis has incorporated these into its bottom-up approach. She also discusses some opportunities Orbis has found in developed markets, despite valuations looking stretched overall.