Small and medium-sized companies may still struggle and jobs remain threatened.

In its results for the year to end-December, Hudaco Industries, an importer and distributor of engineered consumable products, warns that the recession is not yet over. It will take until mid-2010 before economic growth resumes across a broad front in SA, it adds, and renewed investment in mining projects and manufacturing capacity will be slow.

Barloworld says 2010 is proving to be "another challenging year". It remains in a defensive stance. In a trading update, it says it will continue to focus on generating positive cash flows, reducing capital spending, cutting expenses and optimising working capital.

Some big projects, such as Kumba Iron Ore’s expansion, are going ahead, but many industrial and mining companies still see good reason for conservatism towards management and capital investment. Consumers also remain reluctant - or unable - to lift spending.

In these conditions, uncertainty, risk aversion and parsimony are understandable but may also contribute to a weak earnings recovery in many sectors. That could lead to another kind of crisis for investors.

If earnings this year are below expectations, share ratings will decline from present high levels. Many of the investment positions adopted in the past six months will be reviewed. Investors will need to look beyond the turbulence and uncertainty of a slow recovery. And, if the recovery is to gain momentum, business and consumers will need to gain in confidence in coming months.