If you relied solely on local headlines over the festive season to guide your investments, you might have been misled into thinking the Johannesburg Stock Exchange (JSE) was a standout performer globally.
For example, a 31 December headline from Netwerk24 proclaimed, “JSE ends 9% higher in a record-breaking year,” while other local outlets like the Business Day echoed similar sentiments. Yet, these narratives failed to address the resounding bull market on the Nasdaq and S&P 500 — the two dominant stock markets globally.
The JSE today comprises less than 1% of global equity markets, while the Nasdaq and Wall Street collectively account for nearly 70%. This disparity is staggering and highlights why South African investors must look beyond their borders to build lasting wealth.
The numbers don’t lie
For South Africans, offshore investing is not just an option — it is a necessity for maintaining and growing purchasing power. Over the past decade, the JSE’s performance has been lacklustre compared to international markets. While the JSE returned 9% in rand terms in 2024, the Nasdaq surged 29%, the S&P 500 grew 23%, and the MSCI World Index gained 22%.
Consider this: if you had invested R1 million ten years ago in the JSE, your investment would now be worth around R2.16 million. In contrast, that same investment in the Nasdaq would be valued at a life-changing R9.03 million today. Even a balanced global portfolio, split between the MSCI World Index and S&P 500, would have more than doubled the returns from sticking to local markets.
The long-term trend is clear: the JSE has consistently underperformed major global indices for the past 10-15 years. Local currency returns, while impressive, often fail to keep up with the international purchasing power needed for goods and services priced in dollars or euros.
Performance for the past ten years
Source: Ninety One Charting Tool
Forecasters and the pitfalls of short-term predictions
The consistent underperformance of the JSE is even more stark when investors fixate on trying to time a volatile currency with the overly optimistic predictions from some local forecasters. In 2019, for example, a large insurance company boldly claimed the JSE would be the best-performing market over the next five years. Instead, it became one of the worst, vastly trailing global benchmarks.
More recently, the insurer’s chief economist predicted a ZAR/USD exchange rate of R15 at the end of 2024. The year closed at R19.25, a far cry from the forecast. Such examples underscore a critical lesson: rather than relying on speculative short-term predictions or caring what the latest predictions are for the short term, investors are far better served by focusing on a globally diversified, long-term strategy. If the rand is the country’s share price, investors locally will continue to sell their ‘’shares’’ for global pastures; I know I have.
Big tech, simplicity, and the case for offshore investing
In today’s landscape, global diversification remains the most effective strategy for building wealth. Tech giants, especially those driving innovation in artificial intelligence, e-commerce, and cloud computing, have pricing power and resilience that smaller companies often lack. These businesses are not only flush with cash but are integral to everyday life, making them long-term winners regardless of economic cycles such as inflation.
Instead of chasing speculative opportunities, investors can simplify their portfolios with exposure to offshore tech companies, global retailers, and diversified international funds. These investments tap into the booming US economy and allow investors to own businesses that shape our daily lives, from the smartphones in our hands to the platforms we rely on for work and leisure.
Why the long-term view matters
Panic about inflation or short-term market corrections often creates opportunities to buy quality companies at discounted prices. By holding globally diversified portfolios, investors can weather these temporary disruptions and stay focused on the big picture. After all, history has shown that markets reward patience and discipline.
The JSE’s struggles are not just a reflection of poor management or structural issues within South Africa’s economy – they are also a testament to the transformative power of global markets. Investors who embraced global diversification years ago have seen life-changing returns, while those who stayed confined to local assets have watched their purchasing power dwindle.
The bottom line
The numbers tell a clear story: investing only in rands is a losing game in the global economy. Offshore investments are no longer just a smart option; they are essential for anyone looking to secure financial independence and protect their wealth over the long term.
By embracing a strategy rooted in simplicity — tech giants, global retailers, and diversified portfolios — investors can align with the forces driving the modern economy. Ignore the short-term noise, avoid misguided forecasts, and focus on what truly matters: owning the best companies in the world and holding them for the long haul.
Megan joined the Brenthurst Wealth team in March 2026 as an Administrative and Fiduciary Services Assistant at our Val de Vie Office in the Western Cape. Prior to joining Brenthurst, Megan gained three years of experience in the retail sector, where she developed management and client service skills.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Esmarelda Isaacs-Andreas joined the Brenthurst Wealth Stellenbosch office in October 2025, taking on the dual role of Receptionist and Fiduciary Administrator.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Ashley joined Brenthurst Wealth in January 2025 as Office Administrative Assistant and Receptionist for the Stellenbosch Office.
René Heystek joined Brenthurst Wealth in November 2023, as receptionist and administrative assistant in the newly established George/Garden Route office.
Michelle Heystek has built a career in the financial services over the last two decades, after obtaining her B.Com degree in Financial Management in 2005. Once she joined Brenthurst in 2006, she continued her academic journey, obtaining her Certificate in Wealth Management from INSETA in 2007, followed by a Postgraduate Diploma in Financial Planning from the University of the Free State. In 2008, she earned the Certified Financial Planner (CFP®) designation.
Anelle joined Brenthurst Wealth as a Receptionist and Administrative Assistant to Brian Butchart in the Cape Town office in December 2023. She has a wealth of knowledge from working as a liaison between Financial Advisers and clients at TMA and Absa Investment Management Services (Aims) since 1998. She obtained her B. com degree from the University of Port Elizabeth in 1997.
ADMITTED ATTORNEY | FINANCIAL PLANNER & HEAD OF BRENTHURST FOURWAYS
Sanet was appointed in April 2020, joining our Cape Town team as an Executive Administration Assistant to Renee Eagar. She has been in the financial services industry since 1990. Her previous experience includes positions at Sanlam, BJM and ABSA. She spent her last 12 years working at Alexander Forbes Private Client Wealth as a Senior Wealth Management Assistant. She has received numerous accolades over the years which include but not limited to, Alexander Forbes Client Service Excellence – Silver award in 2014,2015 and 2017. Sanet has also obtained her Certificate in Wealth Management (NQF 5) in 2012 and achieved “Best Student of the Year” from Moonstone.
Maria Smit is a Certified Financial Planner® with over 10 years of experience in the financial planning industry.
