Some U.S. Trust analysts are bullish on emerging markets, which includes South Africa. One of the 5 reasons they give is the growth in consumer spending.
“…we still see considerable scope for growth in emerging world consumer spending. Emerging economies account for 85% of the global population, but just under 40% of global household spending. And key consumer segments remain significantly underpenetrated. Mobile broadband subscriptions, for example, stand at just 35% in the emerging world, compared to 87% in developed markets. China surpassed the U.S. to become the world’s largest car market in 2009, but its auto penetration rate is still much lower. And as calorie intake increases, obesity rates rise and sedentary work becomes more widespread, healthcare spending is another areas where we see considerable room for gains in EM consumer outlays.”
Another reason is the change in the EM benchmark.
“… Since the financial crisis, the EM benchmark has undergone a major shift away from industrial and commodity-related sectors toward more consumption-linked sectors… As a result, EM equities are now far more closely geared toward the growth areas of the future.”
Other reasons, such as attractive valuations, U.S. and emerging market business cycles having further to run and Fed rate hikes not affecting emerging markets round out the 5.
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“5 Reasons to Keep Buying Emerging Market Equities”: http://blogs.barrons.com/emergingmarketsdaily/2016/10/26/5-reasons-to-keep-buying-emerging-market-equities/