Educational and learning materialEventsSA markets and economyTrader insightsUncategorized

The Zuma Rubicon!

On 8 July this year I wrote a blog called “Trying to make sense of this market routing”. The JSE just experienced a big fall and everybody was worried. I explained that if you see different scenarios developing in the equity market and Bond market, trust the Bond market. The Bond market is much more

SA markets and economyTrader insightsUncategorized

Time to take money off the market?

28 August 2013 The JSE had quite a spectacular run over the last two months. The Allshare Index gained 14% since 24 June to 26 August and slipped 2% over the last two days. The major engine this time was the Resources sector. The Resi Index shot up 22% from 5 July to 26 August.

Educational and learning materialTechnical AnalysisTrader insightsUncategorized

Investor Education Series – Technical Analysis: Reversal Patterns – Head & Shoulders

Technical analysis patterns can be deivided into two types, reversal and continuation patterns. Reversal patterns indicate that the primary trend is likely to change direction, from an up trend to a down trend or vice versa. Continuation patterns indicate a trend is likely to continue, but the pattern gives valuable measuring objective.  Head & Shoulders

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Are Equities now more risky than Bonds?

Since the onset of the financial crisis in 2008, investors became more afraid of the return “of” their money than the return “on” their money. They flocked in droves out of equities into the safe havens of cash and bonds, mostly US Treasury Bonds. Graph 1 below shows the cumulative net inflows into Bonds exceeded

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Equities outperform other asset classes by far!

The following graphs, compiled by Olof Bergh of Sanlam Private Investments, show how Equities outperformed other asset classes like Bonds, Cash and Residential Property as well as Inflation over a long term. We look at the performance in nominal and real terms as well as without Tax and after Tax. It is assumed that residential