A while ago I wrote an article trying to explain why lower interest rates should drive up asset prices. I quite sure you won’t remember the article as you probably fell asleep while reading it. The article explained how future
I vividly recall attending an investor feedback session with a hotshot offshore manager whose fund had performed terribly. After taking some criticism from the hostile audience he totally lost it, raising his voice he stated that “it was only numbers”.
You had to feel a little sorry for our newest finance minister when he presented the recent mini-budget. Stuck between “a rock and a hard place” with no room to manoeuvre. SA has literally hit its fiscal cliff with the
As investors we are taught not to let macro factors overly influence our investment decisions. There is empirical evidence suggesting that even if you can correctly call a macro event like Brexit it is still impossible to know how the
The million-dollar question for South African investors is the exchange rate. The reason for this is that 50% of the JSE’s overall earnings is now generated from overseas. A weaker rand translates into higher earnings and thus higher share valuations.
The recent political rhetoric or should I say open warfare between the premier league a.k.a. Zuma and cronies vs. the reformists is heating up rapidly and likely to get a lot worse before the ANC elective conference in December. The
Why all the fuss over the recent cabinet reshuffle and the firing of Pravin Gordhan (PG) as Minister of Finance. Quite simply the treasury has been “captured”; the next institution under threat would be the Reserve Bank and then the
Eight years after the global financial crisis the world economy is expected to have its best year as broad based synchronised growth takes hold across the globe. Even SA is expected to deliver growth of around 1.5% vs. a dismal
South Africans are feeling better without really knowing why. The positive sentiment is probably linked to the stronger rand, which is being driven by the stabilization of commodity prices and a renewed investor appetite for emerging markets; but mostly I
Subsequent to writing the article below, the President has announced a dramatic u-turn by appointing Mr Pravin Gordhan as the Minister of Finance. Mr. Gordhan is highly regarded having previously served as the Minister of Finance after Trevor Manuel. Mr