African Stocks May Be Poised to Overtake US Equities in 2024

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SPDR® S&P 500,Vaneck Africa Index ETF

Stocks Analysis by James Picerno covering: S&P 500, SPDR® S&P 500, VanEck Africa Index ETF. Read James Picerno's latest article on Investing.com

Betting against the US stock market has been a losing trade in relative terms in recent years and from a top-down down perspective it’s not obvious that’s about to change. But carving up the global market into regional slices highlights a rally in African stocks that may be set to give US shares a run for their money, based on a set of ETFs.closed on Tuesday with a 14.8% gain so far this year, which is only modestly ahead of AFK’s 13.8% rally.

AFK, despite its pan-African mandate, is heavily weighted in South African stocks, which comprise roughly 40% of assets, according to Van Eck. From a sector allocation perspective, financials and materials dominate with a roughly 60% weight. The fund, in short, offers a particular bet on the continent’s shares. But so far this year, that bet is paying off, fueled by the recent tailwind in South Africa stocks.helps.

The revival of leadership of foreign stocks over American shares has been a hardy perennial for some strategists in recent years, but so far the forecast has fallen flat. But if a regime shift is brewing, perhaps it will begin with leadership in Africa.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.

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