{"id":159273,"date":"2017-02-21T16:45:44","date_gmt":"2017-02-21T14:45:44","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=159273"},"modified":"2017-02-21T16:45:44","modified_gmt":"2017-02-21T14:45:44","slug":"why-you-should-have-put-your-money-on-south-africa-over-the-past-100-years","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/159273\/why-you-should-have-put-your-money-on-south-africa-over-the-past-100-years\/","title":{"rendered":"Why you should have put your money on South Africa over the past 100 years"},"content":{"rendered":"

New data from Credit Suisse shows that South Africa’s equity market has been one of the most successful in the world over the past 100 years.<\/span><\/p>\n

The Credit Suisse Global Investment Returns Yearbook – which covers data dating back to 1900 – showed that the SA equity market has generated a real (inflation-adjusted) equity return of 7.2% a year since 1900, the highest return of the 23 countries analysed.<\/p>\n

South Africa is the only African country to feature in the yearbook.<\/p>\n

In 1900, South Africa had the ninth largest stock market in the world (accounting for 3.3% of the global stock trade), but has since been dwarfed by the rise of much larger global economies.<\/p>\n

The discovery of diamonds at Kimberley in 1870 and the Witwatersrand gold rush of 1886 had a profound impact on South Africa\u2019s subsequent history.<\/p>\n

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Gold and diamond production have declined from their peaks, although South Africa is still the fifth biggest gold producer globally.<\/p>\n

The country is however, the world’s largest producer of chrome, manganese, platinum, vanadium and vermiculite. It is also a major producer of coal, iron ore and other minerals such as ilmenite, palladium, rutile and zirconium.<\/p>\n

According to Credit Suisse,\u00a0gold was once key to South Africa\u2019s wealth, but has declined in importance as the economy has diversified. Financials now account for 27%, while basic materials lag behind with only 13% of the market capitalization.<\/p>\n

Taken together, media and mobile telecoms account for 28% of the market index. The largest JSE stocks are Naspers (21% of the index), and Sasol and MTN (each 5%).<\/p>\n

At the end of 2016, South Africa\u00a0ranked as the seventh-largest emerging market, well below China, Korea, and Taiwan.<\/p>\n

The\u00a0graphs below\u00a0show\u00a0the annualised real returns on equities, bonds and bills over this century, the last 50 years, and since 1900; as well as the annualised premiums achieved over the latter two periods by equities relative to bonds and bills, by bonds relative to bills, and by the real exchange rate relative to the US dollar.<\/em><\/p>\n

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Read:\u00a0This is how much firing Gordhan would cost South Africa<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

New data from Credit Suisse shows that South Africa’s equity market has been one of the most successful in the world over the past 100 years.<\/p>\n","protected":false},"author":10,"featured_media":115770,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[223,26],"class_list":["post-159273","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-credit-suisse","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/159273","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=159273"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/159273\/revisions"}],"predecessor-version":[{"id":159303,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/159273\/revisions\/159303"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/115770"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=159273"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=159273"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=159273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}