• Good oil price amid bad news

    By | Latest news

    The upward trend in the S&P500, i.e. the bull market, has now come to an abrupt end after eleven years. This has been the most-hated bull market ever, because people who were too scared to invest in shares after the 2008 financial crisis, never had a chance to get back into the market and were envious of the people who had just stayed in or had even bought more shares when the market crashed. To put things into perspective, at the bottom of the crash in March 2009 the S&P traded on 683 points. Read More


    By | Latest news

    Unfortunately, we have to address the issue of the coronavirus because it is affecting us all. The virus will most probably spread all across the world and made landfall in South Africa on Thursday last week. We do not need to discuss the details as those have been thoroughly covered by the media but we do want to look at the matter from an investment point of view. Read More

    The Budget and coronavirus

    By | Latest news

    Have you ever watched a heavyweight boxer take a devastating blow to the head but not go down? That is where South Africa is right now. We need only a very light push to crash to the floor but if we find someone to hold us up, we might recover and carry on fighting. In the Budget Speech delivered by Tito Mboweni last Wednesday two positives jumped out, namely tax relief for most people and a R160 billion cut in government salaries over the next three years. Read More

    Don’t avoid what you don’t understand

    By | Uncategorized

    Millennials – the people aged 23 to 38 – see the world differently. They do not want to own a car or a house, those cornerstone assets all the Baby Boomers – aged 55 to 75 – aspired to. They want a self-driving Uber to come pick them up; and they stay in a modern, fibre-connected apartment close to whichever area they are working from that month.  They do not want to hold their smartphone in their hand and type on it, they want to talk to it. They want  to have a conversation with Siri on Apple, Alexa on Amazon, or Google Assistant to order them a Starbucks coffee and sourdough salmon bagel for delivery to their front door in twenty minutes while they put on their make-up. They want Illumina to analyse their genes to make sure they will have a healthy baby and to grow themselves a spare heart in a petri dish for when they need a replacement at age 150. Read More

    Patience is a virtue

    By | The Market

    Equity investors are often told to “buy and hold”, but we have mentioned before that that is not the whole truth and that slow but deliberate adjustments to your investment portfolio are necessary to optimize the return you get and manage the risk you take. Although equities are the best-performing asset class over the longer term (see graph below) and a buy-and-hold strategy will eventually work if you just buy the index, you will notice that there are times when you have to wait for a very long time to go forward. Read More

    RA and tax-free investments before 29 February 2020

    By | Financial Planning

    The South African Revenue Service (SARS) has put several tax incentives in place to encourage us to save more for our retirement and other long-term goals. As the end of the tax year is approaching, you may consider contributing to a retirement annuity (RA) or tax-free investment before 29 February 2020. It is important to remember that when you retire out of an RA, only one-third of the proceeds may be taken in cash, of which a maximum of R500 000 will be 100% tax-free. Read More

    An holistic view

    By | Uncategorized

    Looking at the size of various economies in the world, we once again have to remind ourselves that South Africa is relatively unimportant. But, as SA residents, we do feel that we should invest here – even though we are not forced to do so as before. The relaxation of exchange control regulations allows every person over 18 years to invest up to R1 million internationally without much hassle every year; and if you obtain approval from SARS you can take R10 million offshore annually. Read More

    From 2019 into 2020

    By | Uncategorized

    We started 2019 with a warning that cash as an asset class would not be king for the next five years owing to the valuation level of equities all over the world. We mentioned that the rand could show some strength and that Brexit as well as the US/China trade wars would command centre stage. Read More