South Africa: Why Has the JSE Performed So Poorly?
That the local stock exchange has performed spectacularly badly for investors in recent years is no secret. The detail of why is unfortunately too often overlooked.
Examining the JSE’s top companies can illuminate the problems of the economy and the business environment – as well as giving us a clue about what might happen to JSE stocks in future.
We should be concerned about the state of the JSE because most of us are invested in the stock market, through retirement funds, exchange-traded funds or unit trusts. Government pensioners, through the Public Investment Corporation, are invested in the JSE, though their pensions are guaranteed by the state whatever happens to the Government Employees Pension Fund, so taxpayers are ultimately on the hook. Around R1-trillion of the R1,8-trillion PIC investment portfolio is invested in the JSE, according to the 2018 PIC annual report.
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