A New Perspective

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News & Insights

It is not even the end of January and we have seen some fireworks in world markets already. The Technology Index (Nasdaq) is down more than 10% from its highs; the broader S&P500 is down 6% year to date; and the rand is more than 4% stronger against the dollar.

Welcome to 2022

Wow, what a year we had in 2021! It had a strong start; drifted sideways; came down; and then ended strong again. It was a roller coaster year dominated by Covid-19; but eventually equity markets outperformed everything else out there.

A message from the Directors

As 2021 draws to a close, one inevitably wants to evaluate the year and reach some sort of view on the year gone by. Was it good? Was it bad? Was it challenging? What should I have done differently?

There will always be a reason to sell your shares. If you look at the graph below, you will see that since 2009 there have been many very good reasons to sell your shares, but the markets just kept on going up. One of the reasons may be that you only ever hear the bad […]

Financial independence can be defined as having enough money invested to enable you to live your preferred lifestyle on the proceeds without having to work again. The three main participants in this endeavour are income, expenditure and savings. Most people believe that income is the most important variable of the three but that is not […]

In a poll conducted by the Institute of Race Relations in South Africa it was found that unemployment is a much bigger worry than racism or discrimination (see results below).  We all live in our own worlds and extrapolate what concerns us most to the rest of humanity. We believe that the things that we […]

Longer term returns

As an investor, you have the luxury of implementing an investment plan and then sitting back and letting it do its thing – because your time horizon is longer term. As a trader, however, you have to watch the markets every day and ride the wave of emotional ups and downs. In this internet age […]

We have noted before that there is a mismatch between what governments state as the official inflation rate, and what we feel when purchasing items or paying bills. Over the years we have seen inflation rates come down to levels unheard of in the eighties. Along with these lower inflation rates we have also seen […]

Business as usual

This past week we saw the familiar pattern repeat itself in world markets. The US shares took a beating early in the week, just to bounce back later in the week. The greatly feared debt ceiling crisis in America was averted by a temporary lifting thereof, enabling the US government to pay its debt. This […]

Three quarters of 2021 have gone and so has most of the South African share market performance for the year. On the political front we are seeing some action being taken against corrupt officials, with multiple senior officials of the Department of Health being suspended for their involvement in the Digital Vibes saga. Over in […]

Shaky markets

Last week we saw equity markets across the globe falling on account of the news that a Chinese property developer called Evergrande would default on its interest payments. It must be said that equity markets had been looking for a reason to deflate for some time now and that this Evergrande story was as good […]

Intuitive investing

Sometimes we have to get a feel for the general and not the detail when it comes to investment decisions. This is sometimes referred to as the “trend” and it is usually your friend. Look at it this way: you go on a hike, a drive, or some other group activity where everybody is seemingly […]

“We do not inherit the earth from our ancestors; we borrow it from our children.” This Native American saying is one of many that investors are taking to heart at the moment. There is a palpable shift toward a more sustainable, responsible way of investing all over the world and it is something we all […]

Having that magnum of special Cabernet you won in a golf game in 2000 and saved to drink when you hit sixty stolen in a burglary; having those special Bavarian crystal wine glasses you inherited from your grandmother and kept for very special occasions only, smashed when your cleaning lady moved the display cabinet. Even […]

2021 started with a bang and equity markets rallied across the world. South Africa outperformed the USA initially but is now falling behind, with the US markets hitting all-time highs almost every week. Europe is also outperforming us and the only laggard is China. The problem we have in South Africa is that certain sectors […]

On Sunday, August 15, 2021, the Taliban occupied Kabul, the capital of Afghanistan and the last major city to fall under their control. It had taken the Americans and their allies twenty years and more than a trillion dollars to build up the 300 000 strong Afghan army but it took the Taliban only ten days […]

As long-term investors, our clients are well aware that diversification is one of the most effective ways of managing risk. Diversification becomes more important as an investor inevitably grows older, but the drawback is that it lowers the overall return on an investment portfolio. For younger investors, of course, creating wealth is the main aim […]

Global equity markets rallied impressively in the 2nd quarter, pushing some year-to-date numbers into double-digit territory only halfway through the calendar year.The rally was evenly felt across the planet, with the S&P 500 Index up 8.6%, the MSCI EAFE Index up 5.2% (USD), and the MSCI EM Index up 5.1% (USD). For the year-to-date period, […]

As a South African investor you have a stake in Naspers or Prosus on some level. Naspers constitutes a 17% weighting in the Top 40 index and 80% of what happens in Naspers is linked to Tencent, the Chinese tech giant. Last week we saw Tencent drop 17% at one stage before recovering somewhat. Naspers […]

In the UK they have now had something they called “Freedom Day” with regard to Covid-19. We can all agree that Covid-19 has caused humanity to venture into very obscure places where the things we do resemble something more akin to experiments than confident action. Politicians are administrators, not the experts they generally think they […]

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