The balancing act between the local property component of the index and the offshore portion (some 40% now) remains key in reading the tea leaves. The seesaw seems perfectly balanced at the moment. Offshore stocks are expensive on a fundamental valuation basis and the Eastern European property sector, as priced by South African investors, is a global anomaly. The other side of the equation is currency and the prospect of far superior growth, not evident in South Africa, which local investors are willing to pay-up handsomely for at this point.
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