HomeHome SearchSearch MenuMenu Our productsOur products

Us Inflation

  • Should you be adding protection to your portfolio?
  • There are many economic signals that can accurately predict a recession. A few weeks ago, I wrote about the “inverted yield curve”. It's a very strong predictor that economic growth will contract in the short-term. Rapidly rising oil prices are another excellent indication that recession is hovering just over the horizon. Historically speaking, high inflation combined with low unemp... ››› more
  • [14 April 2022]
  • What could possibly go wrong in 2022?
  • Following a shocking 2020, we had a strong economic recovery in 2021. The US index, S&P 500 ended 2021 up 27%. Its best three year stretch since 1999. The Dow was up 19% on the year, while the Nasdaq gained 21%. Over the last three years, the S&P 500 is up 90%. The JSE All Share index returned 24% for the year (29% including dividends), with the Top 40 shares on the JSE growing 19% (total re... ››› more
  • [22 January 2022]
  • What does the US inflation figure mean for your portfolio?
  • US inflation came in at 7% on Wednesday. This is so far beyond the US target rate of 2% it's terrifying. To give you some perspective about how big a miss this is, our SA target rate is up to 6%. So, to miss it as much as the US did, our inflation rate would need to be 21%. Up until recently, the US Fed argued they didn't have to raise interest rates to combat inflation, since it was “t... ››› more
  • [18 January 2022]
  • If inflation is back, here's what you need to know…
  • US inflation just hit a 30 year high. And the US is not the only country experiencing rising prices. The EU, as well as the UK, have also seen the price of goods and services rising. There are many reasons for this: Supply chains were disrupted by the pandemic; oil prices are high; demand has increased due to stimulus; wages are rising… the list goes on. But the big question every inve... ››› more
  • [15 November 2021]
  • Viv Govender's January 2020 Structured product pick
  • 2020 is set to be a nervous year for South African investors. At home we have this triple whammy to look forward to… load shedding, a potential ratings downgrade and low growth. Internationally we got Brexit, the US election and the ongoing trade war. And maybe even an actual war! All this when many global indices are at record high and way overdue a reset. In such an environment... ››› more
  • [23 January 2020]
  • The ONLY six things that matter when you invest for real wealth
  • At a new year's party, a family member introduced me to a friend and mentioned to them that I work in the investment industry.   The guy leaned in and asked, “So what will the stock market do this year?”   To which I replied “There’s no way to be sure, and it’s not something I focus on when investing”   “How about the economy, will it grow again in 2019?... ››› more
  • [06 February 2019]
  • Emerging Markets go from Cheap to Cheaper
  • Emerging market currencies are losing ground against the majors, giving international investors more “bang for their buck”. The latest bout of weakness comes on the back of CPI in Turkey spiking to 18% and PPI to 32.1%. International investors will not be rushing in just yet as they await a week full of data from emerging markets. ... ››› more
  • [04 September 2018]
  • Emerging Markets on the back foot as the Dollar strengthens
  • The rand has bucked the emerging market currency trend by strengthening 7.6% year to date. The Brazilian Real, Indian Ruppee and Turkish Lira have all weakened over 7%. The Turkish Central bank surprised the market with its 3% interest rate hike last week. We should see an increase in market and currency volatility leading into Friday's US employment data, which is expected to stay near the 1... ››› more
  • [29 May 2018]
  • One to buy as strong earnings bolster markets
  • Global markets are being held up by strong first quarter earnings releases and US data from last week that signals US inflation is being controlled. Over 80% of the S&P 500 has released Q1 results and 78% of them have exceeded expectations. If the trend continues it will be the highest proportion of “beats” in almost 10 years. This earnings growth is keeping valuations in check, the S&... ››› more
  • [10 May 2018]
  • The 6th major asset bubble crash is coming in 2017…
  • You have to go back more than 400 years where the first major “asset bubble” happened. Between November 1636 and May 1637, tulip prices soared 20-fold, before plunging 99%. Then from January 1720 to June, the second major asset bubble occurred also known as the South Sea Bubble. Shares from UK-based South Sea company surged more than eight-fold from £128 to £1,050, before collapsing... ››› more
  • [16 November 2016]
  • Former US Federal Reserve Chairman reveals the cure to the next global economic crisis
  • Remember Alan Greenspan? He was the former US Federal Reserve Chairman from 1986 to 2006. A corrupt, but smart man, who was responsible for pumping endless supply of dollars to “stimulate” the US economy to no avail. Well, in a recent interview after the Brexit referendum he had this to say: “This is the worst period, I recall since I've been in public service. There's nothing like i... ››› more
  • [04 August 2016]
  • The rand waits for the next telling bit of economic data out of the US…
  • After weakening to a new low against the dollar yesterday, this morning the rand picked up slightly. But the local currency is waiting for the release of inflation data from the US later today. This could give further clues as to whether the US Federal Reserve will hike rates next month. Let's take a closer look at what's going on… Traders are focusing on what’s going to happen wi... ››› more
  • [17 November 2015]
  • The rand has R13 to the dollar in its sights
  • Yesterday, the rand came incredibly close to trading under R13 to the dollar. But data out of the US put an end to the currency's rally. So could the rand break through the key level today? Let's take a closer look… Better US consumer inflation data ended the rand’s rally This morning, the rand “ended a recent rally after stronger than expected US inflation data lifted the dol... ››› more
  • [16 October 2015]
  • The release of the Fed's minutes is good news for the rand
  • The rand is hovering close to its best levels in a few weeks as the dollar trades weaker. This latest improvement in the rand and decline in the dollar is thanks to the release of the minutes from the latest Federal Open Market Committee meeting. Let's take a closer look at what's going on… The rand hit a near three week high This morning, the rand managed to trade as strong as R1... ››› more
  • [09 October 2015]
  • The rand trades dangerously close to R13 to the dollar
  • The rand has continued its slide against the US dollar. This comes as the US Federal Reserve is due to release its minutes from its latest monetary policy meeting from the end of last month tomorrow. The local currency is edging closer to R13 to the dollar. Let's take a closer look at what's going on… The rand weakens in anticipation of release of the Fed’s minutes The rand h... ››› more
  • [18 August 2015]
  • The rand rallies stronger along with other emerging market currencies
  • The rand has continued to strengthen after enduring two weeks of extreme volatility. The local currency has managed to claw back well below R11.80/$. Helping the rand and other emerging market currencies has been a weaker dollar. Let's take a closer look at what's going on… Uncertainty over interest rate hikes in the US take the rand stronger Yesterday, the rand gained from an “... ››› more
  • [25 March 2015]
  • What's happening in the markets this week
  • To find out what will be happening in the markets this week... Read below Abil suspended Last weekend the South African Reserve Bank (SARB) and a consortium of African Bank Limited shareholders stepped in to rescue the company. Bondholders lost 10% of their investment, but shareholders have taken the full brunt of fall. The share was suspended and the company is to be split into a good ban... ››› more
  • [18 August 2014]
  • The rand continues to claw back against the dollar
  • Since the South African Reserve Bank hiked interest rates last week, apart from a slight wobble, the local currency is looking stronger. The rand continues to strengthen. And yesterday, it hit a three-week high against the dollar. Let's take a closer look at what's spurring the rand on… A slight rise in US inflation helped the rand gain against the greenback Yesterday, the rand took a ... ››› more
  • [23 July 2014]
  • With the US market returning to normal, expect a slew of economic data this week
  • Last week, we saw a deluge of data out of the US. And it makes sense considering that during the shutdown, the processing and publication of economic data was deemed a non-essential service. And so incredibly influential stock market figures such as the Non-Farm Payroll number were kept under wraps. Luckily, there were no major surprises when the figures were released, and the stock market continu... ››› more
  • [28 October 2013]
  • It could be worse than I thought…
  • Unemployment increases by 27%. For every new business that starts up three move to 'greener pastures'… Electricity prices soar by more than inflation for at least the next decade. Now that's the picture of an economy that's not set to grow. But it's not an example of some third world country in trouble. It's a picture of what happened in California in the USA in the last decade, and ... ››› more
  • [24 April 2013]


Trending Topics