When you get too absorbed with local data (jobs, GDP, Rand, etc) and its effect on the markets this quote on their equity fund is always refreshing....so the slow stagnant economy means less competition and better returns so a higher share price! Good but BAD! "Many people perceive stock market returns and economic performance to be closely correlated. Our interpretation of the very long-term data is that the link is tenuous at best. There are more important factors, such as the level of competition. For example, a stagnant economy like South Africa's may not attract much new investment, which allows the incumbents to continue earning high returns on capital. A rapidly growing economy like China's may attract substantial investment, which increases competition and depresses returns on capital. In South Africa the link between our economy and our FTSE/JSE All Share Index (ALSI) is made even more tenuous by the inclusion in the index of large multinational companies, which have grown substantially from their humble South African roots"
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