This year, student investors participating in the 2020 JSE Investment Challenge will have a slump in the market, as well as the impact of the coronavirus, to consider when making their investment decisions.
Students engaging with the JSE Investment challenge booth on the Rooiplein. PHOTO: Callan Riddles
During the challenge, which starts later this month, students from across South Africa will form teams and get to invest R1 million on a demo online trading platform which mimics the JSE. The team who earns the highest return over the next six months will win R25 000 and an all expenses paid trip to an international stock exchange.
While the markets performed poorly during most of February, members of the Stellenbosch University (SU) investment society have their investment strategies ready for depressed market environments.
“The coronavirus has halted productivity [and] economies have slowed down all around the world,” said Kieran Witthuhn, vice-chairperson of the SU investment society, giving his outlook on the current market. “Right now, the best financial analysts are probably the doctors looking for cures for the coronavirus.”
Witthuhn advised students to look for companies that offer a product that can do well even in a worldwide pandemic.
Kieran Witthuhn, Vice-Chairperson of the Stellenbosch University Investment Society. PHOTO: Callan Riddles
“My biggest tip would be to do your research,” said Janneman van der Merwe, SU BCom (Actuarial Science) student. Van der Merwe, along with his team, has been placed third and second in the 2017 and 2018 high school challenges respectively. He has also mentored other competing teams in the university challenge.
“I spent at least an hour every working day researching graphs, companies, checking out the market and what news was coming out,” said Van der Merwe, when discussing his strategy in previous challenges.
Van der Merwe also encouraged contestants to wait for opportunities to arise and take calculated risks.
The JSE coordinators said that they are excited about the challenge. “We’re really all about financial literacy and trying to equip the youth of South Africa to better manage their money and better understand investing for the long term,” Ralph Speirs, coordinator of the challenge told MatieMedia.
The JSE Investment Challenge booth on Stellenbosch University campus. PHOTO: Callan Riddles