Over the past 20 years, the FTSE/JSE All Share Index has generally followed the movements of the S&P 500, which represents the 500 biggest companies in the US, quite closely in dollar terms.
In short, about two-thirds of the movements in US stocks over the past 20 years were followed by our local stock market.
Explaining how we can use trends in the US markets to get a better idea of what may happen locally is Schalk Louw, portfolio manager at PSG Wealth.
finweek: Money Matters is a weekly programme aired every Friday 13:00 CAT on CNBC Africa (Channel 410). The programme focuses on trends, investment analysis and economic debates.