Look, we don’t claim to know what the stock market is going to do, and the JSE has been a bit of a bloodbath of late.

In the past week alone, 45 out of the 164 companies listed fell to their lowest levels in a year, and that’s probably enough to cause some to panic.

As we discussed yesterday, though, investing is often about playing the long game, and where some see disaster, others see opportunity.

Then there’s also the option to trade Forex, which attracts thousands of new traders daily.

Schalk Louw, a portfolio manager at PSG Wealth, calls that ’45 out of 164′ stat “frightening”, with Business Insider SA showing this list of companies at a 52-week low:

There are a number of factors that have led to this situation – foreign investors flogging their South African shares and fears of a worsening US / Chinese trade war amongst them – but if you’re willing to take a risk or two, there could be sizeable rewards.

Again from Business Insider SA:

Selling has left the local market at its cheapest level in years – the JSE is currently trading at a price earnings level of 11 times.  (The price earnings ratio calculates  what investors are willing to pay for a rand of the company’s profits).  The JSE’s historical average PE is 14 times – and as recently as 2015, SA shares were trading at 17 times.

At these levels, providing South Africa won’t jump off an Argentinian-type cliff, there are inevitably bargains to be had.

Alwyn van der Merwe, Director of Investments at Sanlam Private Wealth, is fond of companies that he believes will “remain relatively stable during both economic upturns and downturns”, which includes British American Tobacco and Mondi.

Louw also picked Mondi, along with:

• Glencore – “the world’s largest commodity trader and a large mining trader”.
• Truworths
• Hudaco – “imports and distributes branded industrial, automotive and electronic consumable products”.

Jean Pierre Verster, portfolio manager at Protea Capital Management, agrees with the Hudaco pick, and added two more of his own:

• AVI 
• Mr Price – “if you have the patience to remain invested for the long term, Mr Price…should pay off”.

Don’t worry, you don’t have to tell people you own Mr Price shares. You can tell everyone you own Woolworths shares instead, if that makes you more comfortable.

Also mentioned as potential investment opportunities were Reinet and logistics firm Super Group.

Don’t shoot the messenger, because we’re just telling you what these chaps above reckon is a sound investment.

[source:businsider]