Charles Roth, of Thornburg Investment Management, has made the case that markets have over-reacted to the recent political shake-up in South Africa, driving asset prices below their underlying value.
Thus (although Roth doesn’t put the point quite this bluntly) this could be a time for some bargain hunting.
Finance Ministry Turnover: December
Jacob Zuma, the President of South Africa and flag bearer of the country’s leading political party, the African National Congress, fired his finance minister in December 2016. The minister in question, Nhlanhla Nene, was a known quantity to the markets, and the rand lost 10% of its forex value over the two days after the announcement of Nene’s departure. He was replaced at first by David van Rooyen, the former National Assembly member for Westville Westonaria City, and a spookily unfamiliar figure in financial circles.
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