16 Mar Getting closer to fully investing R1m in the JSE for you!
We are now invested in 14 of the Top 20 shares voted by you and fully invested in 9 of them. What prompted further investment was this graph showing the start of a recovery on both the S & P 500 Index and the JSE All Share Index. The Stochastic trendline just broke through the average whilst in the bottom quintile.
It was an interesting week where we again experienced good news is bad news for the markets and vice versa. On Friday the 6th of March US Non Farm Payrolls surprised on the upside with nearly 300,000 more jobs created in February. That “good” news prompted a slide in the US and most stockmarkets. Why? Because good economic news brings the US FED closer to tightening interest rates, which is bad news for stock markets. A few days later on Thursday 12 March, US Retail Sales came out weaker than expected, prompting a rebound in the US stockmarkets and, as usual, we followed. We can expect more of the same in coming months, however, at some stage the markets will realise that most of the next rate increase is already priced in the market. As a result these economic indicators will have less of an effect and markets can concentrate on earnings again. Our market will continue to be influenced by whatever might sway rating agencies.
Last Friday (13 March) we doubled our holdings in all four of the ETFs in the Top 4 of the sector. We are now fully invested in the ETF Baskets of shares at about R50,000 each. We also went fully invested in Sanlam, Old Mutual, FNB, Naspers and MediClinic. No new investments were made in the Top 20 shares as their technical indicators are still pointing down.
We will continue to monitor all the other Top 20 shares and invest when we are comfortable.