With the Ramaphosa administration in place and an air of optimism in the air, many people have hoped this will reflect well in the stock markets. But shares are currently down by 6% on the JSE and bonds by 8%. International share are down 5% and if you invested in listed property you are 20 % proper.
Warren Ingram, Personal Financial Advisor and Executive Director at Galileo Capital says that investors have not been well rewarded for being in the stock market due to what he calls 'zumanomics'. This is because the stock market has not kept track with inflation.
It jut tells you that when your stock market doesn't keep track with inflation - that you've been through an incredibly tough time.— Warren Ingram, Personal Financial Advisor and Executive Director at Galileo Capital
Ingram says the biggest question he gets asked is where is major recovery in markets? The country is finally making good decisions in terms of politics, but this has not year reflected in the markets.
To me, I feel like life has become normal. From the point of view that we are not sitting in a position where we getting bad news flowing in all the time, about South African politicians doing things wrong.— Warren Ingram, Personal Financial Advisor and Executive Director at Galileo Capital
Now what's happening is, we're back in the world. We're back to where whatever happens in the international markets does have an impact on us.— Warren Ingram, Personal Financial Advisor and Executive Director at Galileo Capital
At the moment, unfortunately, whats happening in the international markets isn't that good. In fact it's quite bad. So that really what's causing our market to come down for the year so far.— Warren Ingram, Personal Financial Advisor and Executive Director at Galileo Capital
We have had a massive recovery in the rand. This is also a factor for a drop in the markets according to Ingram.
The rand gets stronger. It's not a flaw in our economy, it's not that we're doing something wrong. We are just back in international markets. The markets are in favour of our currency.— Warren Ingram, Personal Financial Advisor and Executive Director at Galileo Capital
For more detail; listen to the interview in the audio below.
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