The lack of tech-focused opportunities on the JSE rather than anything to do with politics is pushing SA’s favourite market commentator into the offshore investing camp. In the latest episode of Rational Radio, David Shapiro unpacked why he is going offshore in a big way this year. He also explained what was behind last week’s sharp rise in Richemont’s share price and, countering the cynics, why he is a fan of Davos. – Alec Hogg
South African stock market expert Dave Shapiro has decided to invest offshore in 2020 — not because of politics but because of opportunity.
The technology companies behind the US S&P500 index are set to continue dictating how we live our lives around the globe and there aren’t these types of companies listed in Johannesburg, was his message to BizNews founder Alec Hogg.
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Turning to Amsterdam-based Prosus, which was spun out of Naspers, Shapiro says it is only a question of time before that company finds an opportunity for its “bulging wallet”. Meanwhile, Hong Kong-listed Tencent, which powered up Naspers over two decades, is likely to benefit from 6% growth in China.
Shapiro tells Hogg how he is worried about SA Reserve Bank forecasts for economic growth of below 2% for the next few years, and they agree that you have to be a stock-picker rather than buying the market if you want to power up your SA stock portfolio.
Palladium is on Shapiro’s list for discussion as is Richemont, in this podcast. The latter’s modest results were slightly better than the markets expected, with the growth in demand for luxury goods “an area you can absolutely not dismiss,” says Shapiro.
“When you look at jewellery, they were very, very strong. To be fair the sweet spot in luxury is in soft commodities – clothing, bags, shoes that attract younger people. Spending is also taking place in make-up, so there’s a certain area of the market which is doing incredibly well. Watches and jewellery are called hard luxury, which is the top end,” continues Shapiro on Richemont.
Turning to Davos, Switzerland, where the world’s elite has descended to discuss the critical issues for business and political leaders, Shapiro says: “You’ve got to be there once… you hang out with people you wouldn’t see normally… it’s maybe the sense of occasion.”
Globally the World Economic Forum is relevant, says Shapiro.
Shapiro says he has never been to Davos, while Hogg says that this year he has given colleague Linda van Tilburg the opportunity to interview the WEF movers-and-shakers for BizNews.com.
