View Full Version : The JSE is a distorted indicator

Rudolph Muller
02-07-2012, 02:37 PM
How is it possible that the JSE hits new highs when consumer confidence is so low? Which indicator is giving false readings?

A related disconnect is how SA can be recognised as having the world's second most well managed banks and generally very impressive financial services yet one of the highest and most incorrigible rates of unemployment.

The explanation offered here is that the global economy is going through a very substantial transformation and the wealthiest countries are addressing yesterday's capital market distortions through creating counter distortions.

This should undermine confidence in share indices’ ability to gauge economic prospects. The JSE’s making new highs is a prime example. It largely reflects integration of international markets


02-07-2012, 02:49 PM
Never really gave it much thought - very nice article from Moneyweb.