Renowned economist Dawie Roodt said if he had to invest R1 million, he would pick the South African stock market and local retail bonds.<\/p>\n\n\n\n
He shared his views during a discussion<\/a> with National Employers\u2019 Association of South Africa chief executive Gerhard Papenfus.<\/p>\n\n\n\n Papenfus asked Roodt what he would tell a client if he came to him with R1 million to invest and whether it is wise to take the money offshore.<\/p>\n\n\n\n Roodt said the first thing to consider is the person\u2019s profile. It is the most important consideration when it comes to investment advice.<\/p>\n\n\n\n For example, an old retiree with R1 million would be best served by putting the money in a bank with a set interest rate.<\/p>\n\n\n\n However, a young person who suddenly gets R1 million has better options. Roodt said the stock market and South African retail bonds are good options.<\/p>\n\n\n\n \u201cThe South African stock market looks very attractive at these levels,\u201d Roodt said. \u201cIt is around 30% lower than where it should be.\u201d<\/p>\n\n\n\n He explained that many locally listed companies, like Naspers and Richemont, earn their money internationally.<\/p>\n\n\n\n These companies are relatively cheap compared to the US market and are not highly exposed to the South African economy.<\/p>\n\n\n\n He is not enthusiastic about the United States stock market because it trades at elevated levels, making stocks more expensive.<\/p>\n\n\n\n Another attractive option is South African retail bonds. They provide good yields and offer a safe option to outperform inflation.<\/p>\n\n\n\n Simply put, South African retail bonds are an investment with the South African Government, meaning the capital invested is guaranteed.<\/p>\n\n\n\n Investors can achieve yields exceeding 10% per year, which makes it one of the best investment options.<\/p>\n\n\n\n Delving deeper into the stocks that excite Roodt, he highlighted four industries: finance, healthcare, education, and agriculture.<\/p>\n\n\n\n He explained that the financial field is changing dramatically, which created promising investment opportunities.<\/p>\n\n\n\n Another is the healthcare sector, where there are great advances that offer equally exciting opportunities.<\/p>\n\n\n\n Two other areas which Roodt believes offer investment opportunities are education and agriculture.<\/p>\n\n\n\n He explained that these four industries offer investment opportunities in South Africa and internationally.<\/p>\n\n\n\n This article was first published by Daily Investor. Read the original here<\/strong><\/a>.<\/em><\/p>\n\n\n\n
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