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
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.
The Rand Rand-hedge shares are shares that will generally benefit from a weakening in the Rand exchange rate, mostly the R/$. We saw the Rand continuing to weaken this year. Looking at a three year chart the Rand strengthened against the Dollar to R6.60 by mid 2011. After a sharp weakening to R8.25 in the
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
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
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