BlackRock Sees South African Asset Rally as Tactical Opportunity
- Longer rally would need to be sustained by economic reforms
- Stocks seen as better opportunity than government debt
A resident looks out towards the skyline of the central business district in Johannesburg, South Africa.
Photographer: Michele Spatari/BloombergThis article is for subscribers only.
BlackRock Inc., the world’s biggest asset manager, sees the recent rally in South African assets as a tactical opportunity, though talk of economic reforms need to be translated into concrete measures for those gains to continue.
The classification of South Africa, which has benefited from the formation of a business-friendly coalition at the end of June, compares with the “conviction” view the company has on other emerging markets such as India and Mexico, based on its views on long-term growth and sustained money flows.