Nolwandle Mthombeni asks
Equities have had a good start to the year as the global markets rallied on the back of the positive sentiment. The sentiment was driven by optimism around vaccinations, as well as the US election outcome.
Expectations by market participants are for ongoing stimulus as both governments and central banks continue to prop up their economies. On the back of that, the equity markets have witnessed a global rotation from growth to value. The South African equity market also benefitted from this, as foreign investors started dipping into our market again looking for value.
We may continue to benefit from the renewed global optimism, but let us not be mistaken, our fundamentals are still vastly different from our foreign counterparts.