16 Aug 2024
Moments of opportunity presenting for investors
Opportunities in the equities market are shrinking, resulting in an increased focus on downside protection, said Etienne Roux, analyst at Amplify SCI* Wealth Protector Fund manager, Truffle Asset Management. With the number of companies shrinking, valuations depressed, multiples low, and several big companies no longer on the JSE, liquidity has been significantly reduced.
But the fund’s managers see many great investment opportunities, including government bonds. As loadshedding has improved, there should be a positive effect based on the prior year effect it had in GDP. 50% of the JSE index are SA-focused businesses that have had 10 to 12 years of exceptional trading conditions, so if the country gets a few things right, there will be significant opportunities and a lot of shares that have been overlooked could provide investment opportunities. The fund sees opportunities in companies that are cleaning up or bulking up. There are also new listing opportunities.