FIFI PETERS: The year 2022 has been a bruising one for equity markets, both locally and offshore. For a perspective on how tough the year has been and where the opportunities in the market still lie, I’m joined by Clyde Rossouw, the co-head of quality at Ninety One.
I think it’s important for investors to remember that good businesses will still be able to grow, even in the current environment. I think, again, within technology it’s important to differentiate between companies that are losing money but have the promise of a better future somewhere down the line. Investors are not prepared to fund those companies anymore. So [with] the likes of Twitter with marginal profitability, a lot of stocks out there that have those kind of characteristics, the market doesn’t have the same patience this year as it had then. It’s a technology business.
CLYDE ROSSOUW: That’s a good question because, if you look at South Africa, South Africa is sort of under-endowed with structural growth stories at the moment. At least when you look at the international environment, there are a lot of sectors that [are benefiting from a] tailwind. And then there are businesses that also benefit from climate change. So we’ve got a software services business called Autodesk that actually leads innovation with computer design in creating blueprints for buildings which are far more energy efficient.
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