Johannesburg - The global economy is going through a "soft patch" and as the slow economic grind continues, equities are the "best of a bad bunch", according to Investec Asset Management on Tuesday.
Portfolio manager Chris Freund said during a briefing that growth was a scarce resource, though the economic disappointment could be viewed as a "soft patch". In this scenario, Investec Asset Management recommends a diversified approach to the markets.
Freund feels more equity volatility can be expected.
The rand, meanwhile, is not expected to weaken significantly over the next couple of years, barring any genuine recession concerns.
"Don't hold your breath for rand weakness. It is dependent on the next recession scare," said Freund.