Preference for Local Equities

In a recent survey by Bank of America (BofA), fund managers in South Africa prefer local equities over the S&P 500.

The feedback was gathered from approximately 20 meetings with clients in Cape Town and Johannesburg, focusing on BofA's Global and South Africa Strategy. The survey incorporated BofA's global year-ahead reports and forecasts to shape the South African Strategy view for 2025.

These findings emerged from a broader discussion at BofA's global macro year-ahead conference, concluding in early December. South Africa's economic resilience was highlighted, comparing its performance with other emerging markets like Brazil.

Investors at the roadshow expressed particular interest in gold prospects, South Africa's GDP growth, earnings per share (EPS) forecasts, and market positioning strategies. A significant concern was determining the optimal time for foreign investors to engage with South African equities.

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