Interview with David Gillson: Trip to Iceland
I have always loved travel, and so I am thrilled to be adding some more travel articles to my blog. I think you will find this series of travel Q&A enjoyable, but also interesting, as we delve a little into how much things cost and how the economies in various countries are developing… or not.
This first Q&A is on Iceland… and how expensive a glass of wine is!
Weekend Read: Intriguing TV
An entertaining read to enjoy this weekend, from one of my favourite online resources. Enjoy!
Big Little Lies – Why Meryl Streep’s Sly Matriarch Works So Well – The Atlantic
Returning to the Basics of Savvy Investing
With so much negativity in the news of late, coupled with an election year, investors have understandably been jittery. A cautious investment environment – with many unsure of the best strategy to pursue, has reflected this sentiment. With this in mind, now is a good time to revisit the basics of smart, long term investing.
Silver Lining for Distressed Investors: ‘sow the Seeds’ Now for Future Returns
In a socio economic environment characterised by volatility and deep-seated uncertainty, local investors are understandably spooked. Coupled with three years of poor returns from shares and listed property, many investors are (naturally) questioning why they should not cut their losses and switch to cash. This anxiety was exacerbated following the worst December for US equities since the Great Depression. Yet for savvy investors, there is always a silver lining to market dips.
Let’s take a closer look at the trends…
Looking Back: What Did the 4th Quarter of 2018 Hold for Investors?
For local investors, December capped an incredibly challenging year. It was the first time in many years that all major global asset classes produced a negative real return. Notably, emerging markets seemed to bear the brunt of the risk-off environment throughout the year – which meant that it was another very disappointing year for investors on the JSE. Tellingly, the FTSE JSE All Share Index closed 2018 with a negative total return of -9.08%.
Season’s Greetings
We wish you a festive holiday season.
From all at Castle Investments.
Taking a Look Back at the Third Quarter, 2018
In South Africa, low returns continue to be off-putting for investors, but the case for staying the course remains strong. On a macro level:
- The SARB left the repo rate unchanged at 6.5% at both the July and September meetings. Many analysts believe that the MPC will keep the rates on hold in Q4 2018, in the face of relatively benign inflation pressure and weak growth.
- The Rand, caught in the Emerging Market currency turmoil, had a volatile Q3-18. The USD/ZAR traded in a range from USD/ZAR 13.90 in July to a peak of R15.4 in September. The Rand then pulled back to R14.14 at the end of the quarter.
- Inflation accelerated modestly in Q3-18 compared to Q2-18, averaging 5% from 4.5% the previous quarter.
