Maarten Ackerman, portfolio manager and investment strategist at Citadel noted that other economies were demonstrating recovery signs in comparison to the local markets.
“It is the first time the US has managed to wipe out job losses since the global recession of 2009 demonstrating that the world is now ready to shift to the second gear,” Ackerman told CBC Africa.
(WATCH VIDEO: Global growth raises challenging economic conditions)
He further warned investors to be cautious when making investments in countries that were still yet to emerge from the effects of the global meltdown.
“You don’t want to put money in government bonds or western governments as you will be guaranteed to make a loss in the next three years.”
Further commenting on global growth, Ackerman said countries like the US had started experiencing measures employed in a strong economy demonstrating strong signs of recovery.
“They started by reducing the tapering and now there are talks about interest rates hike with global growth projected at 3.5 per cent which is a great growth environment in underpinning company profitability,” he said.
Ackerman warned that investors needed to be very cautious in terms of having exposure to the general market and become very selective about companies and sectors in South Africa.
(READ MORE: S.Africa's banks to expect tough times ahead: Moody's)
“The underlining fundamentals in South Africa especially the JSE is telling us a very different story with the industrial sector probably being the most expensive sector in the world in a relatively weak environment,” he said.
“As the JSE is reaching the all-time high our advice is for people to reduce exposure in the market and go out to look for those opportunities in those sectors still offering great value.”