“We believe in South Africa and we’ve found fantastic returns in the last period, the last 10 years plus. But certainly if we look at what the rand has done, for example an annualised rand weakening, over three years, the rand’s actually lost 12 per cent against the US dollar,” he said.
Stewart says when looking at the JSE, developing or emering markets in the country there hasn’t really been many double digit returns. This is the reason why more South Africans are considering investment opportunities overseas.
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When it comes to the US markets, Stewart says they look at opportunities across different asset classes and across different jurisdictions.
“The US is quite expensive at the moment. It’s done exceptionally well three years ago if you had invested you would’ve done well out of that.”
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Many are also looking to invest in the UK as they are showing better value in investments. Stewart says from a valuation perspective the UK still has room to grow while the US has reached further than its full value.
“This world is changing at a rapid rate so what you think could be offering value a year ago could have delivered that value. And now for example US markets, two years ago, there was a lot of opportunity there but now you’ve got to be a bit more circumspect about what your expectations are and the risk you’re taking to get growth.”