• Category

    Latest news

    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

    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

    CORONAVIRUS

    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

    SAA, big test for transformation promises

    By | Latest news

    On the eve of its crippling strike SAA warned that it would apply the principle of no-work, no-pay to strikers but trade unions went ahead with the strike. They are asking for an 8% increase. At first SAA said there would be no wage increases but then they offered an above-inflation increase of 5,9%, retroactive to April 1. Read More

    We have a new cabinet.

    By | Economy, Latest news

    We can all start breathing again after hearing Pravin and Tito will remain in their posts. Most of the Zuma rot has been cut out and the current cabinet members lean more towards an investor-friendly environment and cautious optimism. The rand strengthened after the announcement but unfortunately the strength of the US$ still resulted in the rand trading at a multi-month low. Read More

    Elections 2019

    By | Latest news

    At time of writing (morning of Friday, May 10th), the election results show a drop in votes for both the ANC and DA nationally and an increase for the more populist EFF and Freedom Front Plus. The ANC is, however, very close to the 57%+ mark which will indicate a vote of confidence in Cyril Ramaphosa, giving him more power to get rid of the rot of corruption in government. Read More