• Green shoots in SA shares.

    By | Economy

    Towards the end of September we mentioned that there was a cautious optimism with regard to South African shares and even the SA rand. Now, at the end of October, we have seen some remarkable recoveries in the share price of some companies, such as: Read More

    So much noise.

    By | Uncategorized

    It is amazing how social media can affect your mood. Because of our inherent attraction to bad or controversial rather than good news, social media platforms tend to shove the bad news to the forefront when we open, for example, Twitter. If we click on such articles, the algorithms in the background take note and provide you with more of these topics, resulting in a self-propelling deluge of bad or controversial news. This can be super dangerous due to the fact that we often act on how we feel. Read More

    Some bad things getting better

    By | Uncategorized | No Comments

    We tend to focus on the bad things in our lives. Even genetically we have a fight-or-flight instinct, rather than a hug-and-kiss one. It is, however, a fact that some bad things are becoming less bad, such as the price of solar power and the Covid death rate. Just by looking at the graph below we can see that the cost of solar per unit has decreased tremendously over the last decade. This is good for our pocket as well as for the health of the planet. Read More

    One step forward, two steps back

    By | Uncategorized

    Anyone with an interest in their natural surroundings will be well acquainted with the conical holes made by certain species of antlion larvae in soft, sandy soil. The little creatures corkscrew into the soil, flicking out the sand with their mandibles until they have formed a smooth-sided, cone-shaped hole. Any small walking insect entering the hole is shot at with grains of sand to keep it sliding towards the bottom of the hole where it is grabbed by the antlion larva. Read More

    Into the last stretch of 2020.

    By | Uncategorized

    Finally, we are in lockdown level 1. It has taken six months and caused the SA economy immense harm but if the political will is there, we can perhaps pull ourselves out of this death spiral. The world’s stock markets have rebounded from their lows as we have discussed in previous blogs but economic activity has not. Read More

    Gold and Bitcoin

    By | Uncategorized

    Why do people buy gold and bitcoin? There must be many reasons, but we think one of the main reasons is uncertainty. Gold has always been regarded as a safe-haven buy. When things are not going all that well around the world, people like to invest in something tangible with a scarcity value and gold has always played that part. The important question, however, is why? Read More

    Markets are up but the economies are down.

    By | The Market

    It is strange to see equity markets in most countries performing well, while GDP figures are signaling a deep recession. In the USA especially we see the S&P500 and Nasdaq at record levels but the economy is on a stimulus drip. The answer to this conundrum can be found when we analyze the different sectors. What we see all around us, is the collapse of businesses around leisure activities and travel, such as restaurants and hotels. These sectors have been decimated by the pandemic but they do not represent a large part of the indices. Read More

    JWR flagship funds.

    By | Uncategorized

    Some time ago we decided to create two Fund of Funds in conjunction with ABSA Multi Management to enable us to manage our clients’ portfolios much more tax-efficiently. Usually, when switching from one unit trust to another, a capital gains tax event is triggered and taxes paid, resulting in many clients opting for a “no-switch” approach. This makes it very difficult for us to effectively apply our investment philosophy to our clients’ portfolios. Read More

    Chickens coming home to roost.

    By | Latest news

    We are seeing some consolidation happening in big listed companies. Shoprite is disinvesting from Nigeria; MTN is pulling out of the Middle East to focus on Africa; and SAB abandons R5 billion of capital investment in SA. It is clear that doing business in Africa and the Middle East is just too difficult. Although it is a market where millions of customers can be targeted, the political situation is just not conducive to business. Corruption, sanctions and volatile currencies make it impossible to generate a steady profit, resulting in the whole company being dragged down. Read More

    FAAG stocks impress in Q2

    By | Investments

    I was watching the after hours release of the second quarter results for the FAANG stocks, excluding the N (Netflix), on Bloomberg at 22:30 on Thursday. These results covered the period during which Covid-19 caused most of its damage and a lot of businesses suffered permanent damage. But FAAG beat all the expectations, resulting in their share prices going up by as much as 6%. It is clear that their lofty valuations are supported by growing customer numbers and earnings. Read More