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Market Analysis

  • Investor discipline

    Investor discipline

    Let’s not beat around the bush - whoever invests is in it to make money (clearly not to lose money). Be it an investment in a money market instrument or a bank term deposit, a short term investment (in the form of a trade aimed at making a...

  • The most expensive shares in the world

    The most expensive shares in the world

    Investing is mostly about making money, and investing in safe assets often provides a stable return that unfortunately does not yield much. Investing in shares is perceived as being riskier, but with the right selection, shares can provide higher...

  • 2016 a pivot in history

    2016 a pivot in history

    2016 ended on an optimistic note; thank God, as it had really started badly. I left the blocks in 2016 in an ideal position by anticipating the correction to come and keeping a sizable horde of cash on the side to invest at the right time. That...

  • European Financials – Out of favour or not quite yet?

    The year ahead has the task of easing the strain that numerous global sectors have faced throughout 2016. Financials, notably in the Eurozone have upside potential as a number of geopolitical and economic factors unfold. European financials were...

  • Emerging market economies in 2017

    To think that emerging markets would have had the run they did in 2016, following the dismal start to the year, and come out of it more than unscathed, is no mean feat. Let's face it. 2016 was a challenging year for emerging markets, and it could...

  • The duration concept, it’s all about the pace

    Expectations of Federal Reserve (Fed) rate hikes in 2017 have now increased as opposed to the previously expected, while in Europe some sort of indication of tightening going forward seems to be justified. Thus as markets commence pricing prior...

  • Fed rate hike expectations and emerging market bonds

    Following Trump’s victory which pushed the US dollar towards a remarkable appreciation against major emerging market (EM) currencies, many market participants thought that the re-pricing in EM bonds would be as strong as the tapering tantrum, way...

  • The dollar and emerging market vulnerabilities

    One of the effects of a strengthening dollar is the shift of capital flows out of emerging markets. There are two factors that influence the dynamics of this shift. The first is a reversal of capital flows. This is important because some emerging...

  • Braving fear as point of inflection looms

    As the year draws to an end, performance will be reviewed, selections will be put forward and allocation decisions will be made, as investors target the best investment positions heading into 2017. Volatility has been rife over the past two years.

  • Interest rates – where do we go from here?

    The final quarter of 2016 has undoubtedly been characterised by a marked shift in momentum and investor sentiment within the bond market across different sub-sectors within the asset class. Many might argue that it has been a long time coming.

  • Top performing stocks in the oil and gas sector

    Two years have passed since Saudi Arabia let demand and supply determine the price of oil in the market. This mechanism led to a heavy selling in the price of Brent crude from $115 per barrel in June 2014 to a low of $28 per barrel in January...

  • Common investment mistakes to watch out for

    Common investment mistakes to watch out for

    Very recently, Shane Oliver, head of Investment Strategy and Chief economist at AMP Capital, listed seven common mistakes investors have a habit of going into. According to Oliver Shane investors very often commit investment mistakes because they...

  • Liquidity concerns in a weak market

    One out of the many considerations investors should make in investment decisions is to ascertain how liquid an instrument is, both at the time of purchase as well as at the time of divestiture. Equities, bonds, currencies and collective investment...

  • Globalisation and post-Trump investment ideas part II - Europe

    Globalisation and post-Trump investment ideas part II - Europe

    Anyone who read my article last week was treated to some thoughts about globalisation. As a bonus to readers I also shared some investment insight adequate for these turbulent times. I promised to continue the article this week. The euro and the...

  • Pathway to deregulation

    US equities continue to rally this week on continued optimism of increased fiscal spending by the Trump administration when they take office. For what has for many months been depicted as a disaster scenario in investors’ eyes is now turning into...

  • Bond vigilantes and Trump’s fiscal promises

    Now it’s been just over a week since US voters surprised the world by electing the controversial Republican candidate Donald Trump. To what investors perceived to be, possibly, another Brexit in terms of volatility, the equity market turned...

  • Transitioning into a political paradigm shift

    Political risks in global markets have reached new levels in 2016. From a Brexit vote outcome to a Donald Trump presidency, risks seem nowhere near abating in the near term, with the latest Italian polls leaning towards a rejection of Italian...

  • Why are banking stocks rallying hard?

    When Donald Trump made his case in front of the US electorate why he should be the next US President, he mentioned many changes in policies adopted by the Obama administration. Every proposed change has consequences - some good and some bad, there...

  • All eyes on December FOMC Meeting

    As had been widely expected, the US Federal Reserve’s Open Market Committee kept interest rates unchanged yesterday. In all fairness, it was never really on the cards as the market was only pricing in a 16% change of a rate hike as at last...

  • What importance do we give to our overall wealth?

    The role of asset managers is quite vast, but, put simply, can be split into three distinct roles. Firstly, asset managers need to grasp and decipher market direction by taking a close look at the way the global economy is developing and evolving,...

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