News flash The known unknown

The known unknown

Equity markets have enjoyed a strong start to the year despite a slight retracement this week, with the S&P 500 peaking last Friday 4.16% up year-to-date, and our preferred global equity funds having gained as much as 6.7% earlier this week. Looking forward, we believe that earnings will be the key market influencer for the…

News flash The broken clock

The broken clock

Inflation is the theme that has defined 2022, so the year draws to a close with some welcome news. This week, we saw the first signs that price pressures may be peaking with the annual US consumer price index (CPI) at 7.1% for November, the lowest since December last year, and below a reading of…

News flash Living in a coal-powered past

Living in a coal-powered past

As the global community seeks to accelerate the move towards cleaner power sources, South Africa’s government is still hooked on coal. This is despite the hundreds of billions of rand South Africa has secured from rich countries to help fund its just transition towards renewable energy. Business Day carries an editorial about how government seems…

News flash Better the devil you don’t know?

Better the devil you don’t know?

While the Fed’s announcement on Wednesday that they will be looking to raise rates by 0.5% going forward (as opposed to the last four moves of 0.75%) moved markets very positively on the day, we’ve chosen to focus on the local political story of the week, which is also making international headlines. As the independent…

News flash The Great Crypto Collapse of 2022

The Great Crypto Collapse of 2022

Billions of dollars in crypto holdings have disappeared this year in a series of business collapses. According to Bloomberg News, the combined value market capitalisation of crypto assets has fallen by an estimated 73% since peaking in November 2021, wiping out $2 trillion in value. Casualties and/or failures have included TerraUSD, Luna, Three Arrows Capital…

News flash Some welcome respite - inflation

Some welcome respite

Yesterday, it was announced that US inflation had cooled in October by more than forecast, causing US stocks to surge the most since early 2020. On the day, the S&P 500 gained 5.5% in a euphoric reaction to the possibility that the US annual inflation rate may well have now peaked, and that the worst…

News flash Playing into the Fed’s Hands

Playing into the Fed’s Hands

On 29 July 2022 we wrote about the fact that in these paradoxical times, bad news is good news. This theme continued in the last week as the earnings of some of the largest tech companies disappointed, which reportedly plays right into the Fed’s hands. While it’s not helpful for investors to see the earnings…