{"id":1455,"date":"2023-10-26T10:05:58","date_gmt":"2023-10-26T10:05:58","guid":{"rendered":"https:\/\/www.innov8fs.co.za\/blog\/?p=1455"},"modified":"2026-03-18T11:46:25","modified_gmt":"2026-03-18T11:46:25","slug":"invest-your-pension-in-american-stocks","status":"publish","type":"post","link":"https:\/\/www.innov8fs.co.za\/blog\/2023\/10\/26\/invest-your-pension-in-american-stocks\/","title":{"rendered":"Invest your pension in American stocks"},"content":{"rendered":"

\"\"<\/p>\n

An analysis of the performance of the JSE All-Share Index and S&P 500 shows that South Africans will benefit greatly by investing in US stocks.<\/p>\n

Renowned investment specialist David Shapiro\u00a0recently highlighted\u00a0that people who invested in the JSE lost money this year.<\/p>\n

\u201cThe JSE is down 4% year-to-date in rand terms. In USD, the JSE lost 14%. The S&P 500, in comparison, is up 10%. That is a 25% gap,\u201d Shapiro said.<\/p>\n

\u201cYou can kiss Putin\u2019s \u2018tochas\u2019, bow and scrape to Xi, and invite Iran into BRICS, but just make sure your pension is invested in American stocks.\u201d<\/p>\n

Daily Investor\u2019s analysis showed that the JSE All Share Index is down 5.7% year to date. The S&P 500, in comparison, provided a 10.5% return.<\/p>\n

Taking the rand\u2019s depreciation into account shows that the S&P 500 delivered a 23% return to South African investors in 2023.<\/p>\n

The S&P 500, therefore, outperformed the JSE All-Share Index by 28.9% year-to-date when considering currency depreciation.<\/p>\n

The underperformance of local stocks was caused by many factors, including load-shedding, slow economic growth, poor political decisions, and global events.<\/p>\n

There has been a significant outflow from local equities and bonds from foreign investors who have lost faith in the South African economy.<\/p>\n

South Africa\u2019s junk credit status, paired with its recent Financial Action Task Force (FATF) greylisting, has accelerated this trend.<\/p>\n

The South African Reserve Bank\u2019s Monetary Policy Review\u00a0revealed that\u00a0the country experiencing investment outflows every year since 2017.<\/p>\n

The Reserve Bank said South Africa experienced significant outflows from foreign investors in the first half of 2023.<\/p>\n

The increase in outflows resulted in the rand reaching its lowest-ever exchange to the dollar of R19.80 on 25 May 2023.<\/p>\n

It attributed the significant outflows to local structural economic issues and geopolitical tensions of the country\u2019s own making.<\/p>\n

JSE\u00a0versus\u00a0S&P 500\u00a0(in ZAR)<\/h2>\n

R1,000 invested in the JSE All-Share Index at the beginning of the year would have fallen to R943 in October.<\/p>\n

In comparison, R1,000 invested in the S&P 500 at the beginning of the year would have grown to R1,232 in October.<\/p>\n

\"\"<\/figure>\n

JSE\u00a0versus\u00a0S&P 500\u00a0(in USD)<\/h2>\n

$1,000 invested in the JSE All-Share Index at the beginning of the year would have fallen to $845 in October.<\/p>\n

$1,000 invested in the S&P 500 at the beginning of the year would have grown to $1,118.68 in October.<\/p>\n

\"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

An analysis of the performance of the JSE All-Share Index and S&P 500 shows that South Africans will benefit greatly by investing in US stocks.…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1455","post","type-post","status-publish","format-standard","hentry","category-innov8ions"],"_links":{"self":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/1455","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/comments?post=1455"}],"version-history":[{"count":1,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/1455\/revisions"}],"predecessor-version":[{"id":1459,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/1455\/revisions\/1459"}],"wp:attachment":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/media?parent=1455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/categories?post=1455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/tags?post=1455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}