The Problem with Cryptocurrencies
Cryptocurrencies like Bitcoin and Etherium (see article “Demystifying Virtual Currencies”) have generated a great deal of interest because of their spectacular gains (and losses). Investors are trying to determine if cryptocurrencies are an investment opportunity, a bubble or the end of money as we know it. In his considered and detailed report Brandon Zietsman, CEO of PortfolioMetrix, argues that when investing in cryptocurrencies one needs to be clear-headed about the risks (a view with which I concur). Click here to read the article.
JSE All Share (ALSI) Performance Is Being Driven by a Handful of Shares
ALSI performance driven by a handful of shares.
Stripping out Naspers, British American Tobacco and SAB/Anheuser tells a different story. (click on the graph to enlarge)
Source: Coronation Fund Managers
Political Events Do Not Drive Long Term Returns
With the Gupta-leaks revelations sending confidence to new lows and the battle within the ANC before the December conference continuing to dominate headlines, it is easy to imagine that political events ultimately drive stock market returns, however, the graphs below show that it is not political events but ultimately earnings that drive long term returns. (click on the graph to enlarge)
A Look Back at the Second Quarter 2017
A combination of volatile politics and stagnant economic data made for a difficult period in the local context. Globally, there are signs of improvement on the macro economic front.
For local investors, the key is to not let the bad news overwhelm you – there are certainly upsides if you can stick to your guns and hold on to your investment strategy!
An EMERGING MARKET CURRENCIES Outlook – In Brief
Amidst ongoing political and economic flux, investors are asking important questions as to the future of the Rand (and other emerging market currencies)…
In general, emerging market currencies, including the Rand, continue to be supported by the global search for better returns. However, SA risks are rising.