All JSE Alsi real total returns (real $) since 1994 occurred in just 5 years: 2002-2007. Outside of that period (1994-2002 & 2007-2019), real $ Alsi delivered - 0.9%/year.
2002-2007 Alsi real $ gains came on the back of a commodity boom, global debt binge, and rapid domestic capital consumption to fund rampant household consumption. The company carnage on the JSE is testament to a very widespread destruction of wealth.
Also wouldn't underestimate how leveraged BEE financial engineering on a mountain of easy money from '03/04 goosed the SA stock market. Doesn't mean wealth wasn't created during this period, only that it was simultaneously destroyed elsewhere. Go see the carnage in small-town SA.
But here's the punchline: JSE Alsi has matched the MSCI World total return index since 1994. Though considering SA's position in '94 and untapped potential, this could be seen as a severe underperformamce.
Isolating 'SA-facing stocks', they've underperformed MSCI World since '94 by -60%. Of course, some argue this makes them very cheap. Indeed, they are cheap. Now they need macro recovery to make them valuable.
