JOHANNESBURG – The JSE’s All Share Index has had a significant run over the past few months, gaining almost 20% since late in June on indications that the US Federal Reserve will delay tapering its quantitative easing programme.
While South Africa is generally regarded as one of the markets most vulnerable to tapering, Mobius says he is not concerned about it.
“The tapering in real terms does not have an impact since the pile of money already printed by not only the US central bank, the Fed, but central banks in Europe, China, and Japan, means that the amount of liquidity in the global system is plentiful. There is of course a short-term psychological impact for all markets, including South Africa,” he says.