REF: The Mad Hedge Fund Trader May 2012
"It looks like the next "blue light special" will be offered in South Africa, Apparently the retail giant, Wal-Mart, got the memo that the country is a great place to invest. Its $4.3billion did for retailer Massmart is a huge vote of confidence for that emerging nation.
My old friend, Carl Van Horn, former chairman of JP Morgan Investment Management, taught me the golden rule that has proved invaluable over the decades. Follow the money.
Go to the Industries and countries where the big companies are making direct investments, because stock market always follows.
What is Wal-mart seeing in SA, with unemployment at 25%, and a simmering race war peculating below the surface ?
Perhaps the skyrocketing prices fro gold & diamonds, the country exports will trickle down to the main economy, cutting the jobless ranks and accelerating development.
Booming economies tend to have a salving effect on social problems too.
That would be a boon for retailers selling not only to a rising middle class, but to the rest of Emerging Africa !!
Wal-Mart is not alone in this leap of Faith. Check out the ETF for this fascinating country and consider scaling in on the current big dip."
Enjoy reading this as much as I did
Steven
Steven Morris Chartered Accountant (SA)
Mobile :+27 83 943 1858
Facsimile : 0866 712 498
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