Markets & Equities

The correlation between shares and interest rates

I have referred to the correlation, or lack thereof, between quite a few ratios and investments in my past writings. But much like Australian Cricket players and sandpaper, when we take a closer look at the relationship between our stock market and interest rate cycles, you will see that these two do in fact go […]

Financial Planning

Saving in offshore investments

We still find ourselves in the month of July, which also happens to be National Savings Month. In my previous three columns, I discussed the importance of saving both before and after retirement. This week, I would like to touch on something that has recently appeared regularly both in the press and on social media: […]

Economy

Just how defensive are defensive stocks right now?

Defensive stocks are predominantly found in industries where companies are mainly focused on delivering cheaper products or services that consumers find hard or impossible to manage without. Typical examples of areas where defensive investments can be found include food manufacturers and retailers, medical care and the tobacco and alcohol industries. The fact that delivering these […]

Economy

How to avoid investment fraudsters

Nature never ceases to amaze me. A few years ago, during winter, our Border collie passed a little too close to our heater at home, and out of sheer curiosity about this heat-emitting wonder, walked away with a burnt snout. To this day, she avoids the heater by a few meters, even when it’s switched […]

Markets & Equities

A look at the South African market in the context of emerging markets.

Bertrand Russel said “Collective fear stimulates herd instinct, and tends to produce ferocity toward those who are not regarded as members of the herd.” This is particularly fitting when we consider investments, as fear and greed are seen as the two main emotions in driving our markets. For this purpose, however, I would like to […]

Financial Planning

How cycling connects to better long-term investing

Biking to retirement: Start with small achievable targets and learn to ride the ‘investment bike’ over many years, long before retirement. As a recreational cyclist, I regard cycling as one of the most enjoyable and effective ways to get around. But while some cycling is for recreation, other times it can be about incremental goal […]

Equity reports

Get to know your offshore companies: HEINEKEN NV (AEX: HEIN)

Heineken N.V. is involved in the brewing and selling of beer. The Company operates through five segments: Africa, Middle East & Eastern Europe; Americas; Asia Pacific and Europe. The company recently released its results for the half year ended 30 July 2018. Their organic net revenue increased by 5.6%, consolidated beer volume increased by 4.5% while […]

Financial Planning

Stay sharp with the SHARPE RATIO

The rules and regulations relating to investments have changed considerably since 2002, especially in terms of advice given to clients. In addition, we now find ourselves in the ‘calm before the storm’ as investors are becoming increasingly worried about the market’s high and risky levels. Many are either starting to flee or to search for […]

Markets & Equities

Shares and Interest Rates go hand in hand

We’ve all heard the saying: “It goes hand in hand.” The easiest way to illustrate its meaning is by referring to examples such as cheese and wine, tea and biscuits, Sonny and Cher, and Bismarck and a disciplinary hearing. When we take a closer look at the equity market and interest rate cycles, it becomes […]

Markets & Equities

Invest with a clear Mind and not a weak Heart

In a previous article, I asked you to imagine your perfect summer holiday at your dream destination. Now imagine that same holiday while having a bad bout of the flu. Your body is aching, your head is pounding and you are running a fever. I hardly need to explain why this holiday would turn out […]

Financial Planning

Procrastination is the Thief of Time

We recently decided to spend a beautiful Sunday at one of our favourite Cape Winelands restaurants. Instead of booking a table immediately, I spent my time attending to an array of other tasks and each time my wife asked me whether I had made the booking, I answered: “I just want to finish this and […]

Financial Planning

Understanding Risk Tolerance

Arthur Rudolph, the scientist who managed the development of the Saturn V rocket for its first mission to the moon, described risk tolerance perfectly: “You want a valve that doesn’t leak and you try everything possible to develop one. But the real world provides you with a leaky valve. You have to determine how much […]

Markets & Equities

Focus on the Earnings, not the Share Prices

Water skiing is certainly not intended for the peaceful vacationer. You are yanked to the surface like a cork released under water, and you need to hold on to the rope for dear life to avoid any unfortunate accidents. It’s quite amusing to watch – sometimes the water-skiers fall far behind the boat and other […]

Financial Planning

Tax-Free Investment Plan – New flavor of the Month?

Not too long ago, almost every other car had a few ‘My Family’ stickers on the back window. Did they increase the car’s value? No. Is the sticker of the father on a bicycle perhaps an indication that the father of that family is super fit? Probably not. These stickers were a trend and like […]

Markets & Equities

TRADING IDEA – Novus Holdings (NVS)

Novus Holdings (previously known as Paarl Media Group) is one of the leading printing and manufacturing groups in Africa. They offer printing and tissue manufacturing services in an extensive range of formats, substrates, finishes and value added services. The Group plans to list on the 26 March, trading under the ticker code NVS.   Key […]