Investment markets thrive on diverse opinions. The JSE very much among them. Judging by what we’ve already seen in this first working week of the year, 2015 is shaping up to be quite a year for share prices listed on the JSE.
The falling oil price is thus far being interpreted as negative for asset prices. Tom Elliott of deVere reflected the view of most analysts when chatting to us from London yesterday. Lower oil, he opined, reflects the sluggish global economy. He concludes that share prices will struggle this year.
Perhaps. But I’m with the other team – the one which reckons lower oil prices are actually the result of higher supplies. And that with trillions of dollars being put back into the pockets of consumers worldwide, this stimulant to the global economy – and corporate profits – is pretty obvious. Glad to see David Shapiro thinks the same way. He’s predicting a boom year for shares in 2015. IMHO, this time he’s on the money.
