Market Wrap - Stock pick — Government bonds

Kwame Antwi from KOA Capital chose Government bonds as his stock pick of the day. "We've been discussing this for the last couple of weeks and every time I come here I am fairly conservative. I prefer bonds, if you look at the 10 year government bonds you are getting a yield of almost 9%. Inflation is just under 4,5% so you are getting just about 450 basis points for your yield. Given the uncertainty around the economy and global markets, I think the more likely direction for interest rates in South Africa is downward, so you are going to get some capital appreciation. I think it is a nice place to hide untill we get some clarity on the economic front.