• Understanding the rand.

    By | Economy

    Wow, the rand is something to behold. As South African investors we are fascinated by and intimately linked to the volatility of our currency. Just look at the graph below, borrowed from a recent Anchor Capital newsletter: Read More

    Is that a light I see at the end of the tunnel?

    By | Investments

    While the Covid-19 infection rate in South Africa is picking up speed and the government is still making controversial lockdown decisions, lots of businesses are taking matters into their own hands and ignoring some of the irrational rules which are destroying their livelihoods. Wearing a mask and keeping one’s distance are, however, two newly-formed habits that are taking hold. Read More

    Impact of Covid and R500 billion stimulus

    By | Economy

    It was with some sense of relief that we heard the unsustainable hard lockdown would be phased out on a risk-adjusted basis starting on the first of May. The economic impact of this pandemic has been severe and looking at the investment returns year-to-date we see the following: Read More

    For every loser, there is a winner

    By | Uncategorized

    A lot of things in life have a binary outcome. It is either black or white; you either win or you lose; it is either a boy or a girl; etc. But, depending on your outlook on life, most things can have a subtly different hue of the absolute. Currently we are experiencing something that humanity has not experienced for a very long time, and for most of the people alive today, never. A pandemic as alarming as Covid-19 is, however, not the first crisis the world has dealt with. But it is one that affects both people’s health and the economy. Read More

    Shares soar but Covid will fight back

    By | Latest news

    Last week, the US stock market had its best three-day performance since the 1930s. From Monday to Thursday it surged upwards by 19%. Unfortunately, even so it is still down 19% for the year to date. A possible reason for the market’s resilience is the massive stimulus package approved by the US Congress. The $2 trillion stimulus package is equal to 9,3% of US GDP and almost double the size of the 2009 package which matched “only” 5,5% of GDP at the time. Read More