Effective Investor

Why is the South African stock market important? First, it is classified as an emerging market. However, while the country shows emerging characteristics, its stock market is highly developed. It is one of the oldest stock exchanges in the world and is the eighteenth largest in the world in terms of market capitalisation and trade. It is by far the largest of Africa's 29 exchanges and accounts for over a third of the stocks listed on the continent. It is an integral part of the world-class financial infrastructure of the country, and South Africa was ranked first of 139 countries for its regulation of securities exchanges by the World Economic Forum in 2010. Global emerging markets are evolving into developed markets, while frontier markets are becoming the new emerging markets. Understanding the South African market provides insight into the paths that these markets will follow in future. Similarly, the techniques highlighted in the book for dealing with volatility are applicable to similar markets elsewhere.

Franco Busetti Franco Busetti has been an investment professional for 25 years. Originally trained as a chemical engineer, he has also completed a B.Comm. (Hons) in economics, the CFA, a B.Sc. and an M.Sc. in artificial intelligence. He was Head of Research at Absa Securities before becoming Strategist and Head of Quantitative Research at JP Morgan and Credit Suisse Standard Securities. Franco has been rated 45 times in ten different investment categories in the Financial Mail analyst ratings, and has been ranked first in investment strategy, quantitative research and innovative research.