Why global diversification is key to wealth creation

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.

- Arin Ruttenberg

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.

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 lackluster 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%.