By late October, there was ample evidence that the global Covid infection rate was spinning out of control. Equity markets were weaker, down a second consecutive month, while the upcoming US election was dividing the country’s population like never before. However global traders betting on a continued slump absorbed a $163bn loss in November, adding…
This year has been characterised by immense duality: The record velocity at which markets declined and then recovered; despair and hope; growing income disparity; stimulus on/stimulus off; and investor sentiment around increased Covid-19 infections versus positive vaccine developments. As we transition into 2021, such duality may continue as ‘‘traditional’’ industries begin to shift to pre-pandemic…
In our July article entitled “Equity Market Direction – Will it be the ‘P’ or the ‘E’?” we wrote about the well-known fact that corporate earnings (E) are a very influential driver of share prices (P) over the long-term. To quote US-based investment advisory firm, Fisher Investments: “With two companies now reporting positive advanced trial…
In his song, Thuma Mina, late South African jazz musician Hugh Masekela anticipated a day of renewal, of new beginnings. The translation of Thuma Mina – “send me” – was the mantra that newly elected President, Cyril Ramaphosa, built on in his State of the Nation speech on 16 February 2018, which drew on the…
At the time of writing, it still remains to be seen as to who will win the United States election. In the midst of the process, the temperature of the nation has become feverish with protests ranging from the electoral system itself to the validity of mail votes and late counting. Meanwhile, the incumbent president has…
While second waves of the Covid-19 virus are causing a major upheaval in some key developed markets this week, the biggest news item and risk to global stability is still next week’s US Presidential Election. I recall the French president, in the early to mid-2000s, saying that the US election was too important to the…
In last week’s News Flash entitled ‘‘Money doesn’t grow on trees’’, we highlighted that the most substantial and enduring impact of Covid-19 will be the dramatically increased level of debt on almost all global government balance sheets. As a logical sequel, this week’s quote relates to the extraordinary level of money-printing by central banks. On the…
Perhaps the most substantial and most enduring impact of Covid-19 will be the dramatically increased levels of debt on almost all global government balance sheets. The economic impact of the pandemic has severely affected both the income and expenditure sides of the fiscal equilibria – as tax revenues plummet due to decreased economic activity and…
As the globe continues to grapple with Covid-19 and its societal and economic impacts, it is noteworthy how some positive themes are emerging: Increased pressure is being brought to bear on president (Trump), and past president (Zuma), to hold each of them accountable for ‘unusual’ payments to avoid tax and to prove guilt on corruption…
