What the Experts say

The market, at present, contains sufficient elements to make the informed investor nervous, (not to speak about the uninformed), but it is important to keep the original intention of investing into the market uppermost in our minds and not allow ourselves to be distracted by only the negative news on the surface.  Beneath it all, […]

Professor Chris Harmse and his team have the following to say: “Economic growth is slowing, the currency is on a declining trend, inflation is increasing and interest rates are set to increase further. Though enough cause for pessimism, it also forms part of the economic rebalancing package. The end result will be a sounder economy. 

The JSE All share enjoyed the surprise announcement by the SARB of (only) a 50 basis point hike in the repurchase rate to 12.0%  The market was expecting a 100 basis point increase and Financial (+1.61%) and Banking stocks (+1.49%) recovered earlier losses.  On the domestic front, given that the market had already priced in

The JSE all share closed 0.79% in the red yesterday (32 208.96), dragged down by a worsening inflation outlook and softer commodity prices.  The Consumer Price Index excluding interest on mortgage bonds, namely CPIX, increased 10.4% (y:y) in April – higher than the market’s expected 9.9% y:y rise.  The Governor of the Reserve Bank, Mr.

The signs are clear to me, as a Financial Advisor, and seen from the view point of some very highly qualified analysts, that this is a time to hold on to your shares or market-linked investments.  Professor Chris Harmse says the following:  “In the March issue of technical analysis, the following was forecast: ‘I am

The JSE all share closed on a new record of 32 153.48 points yesterday – breaking the previous high recorded on Tuesday by 224.39 points.  The bourse was supported by stronger commodity prices, a slightly weaker rand as well as good results released by miners this week.  Read on

StatsSA released the March consumer inflation data today, reporting inflation of above 10% in both the CPI figure, 10.6% y:y,  and CPIX figure, 10.1% y:y.   In February these figures reported y:y rises of 9.8% and 9.4%, respectively.  These double digit numbers are indicative of the escalating inflation pressure in the economy.  Read on

The attached report regarding inflation appeared in the Business Day today. Read the report

The following article by Prof. Chris Harmse (Republished with the kind permission of Dynamic Wealth), makes interesting reading. From January 2009, South Africa will enter another new era in the measurement of inflation, and this era is likely to have a dramatic impact on South Africa’s inflation rate. This change stems from the proposed reweighting

OMIGSA’s Chief economist, Rian le Roux, explains the risks of stagflation and why the current situation in South Africa should not deteriorate into anything as bad as the 1970’s and 80’s.

“The stronger than expected manufacturing figures is another curve ball in the interest rate debate as it indicates that GDP growth could be less affected by the electricity crisis” says economist, Fanie Joubert.  Read more about the background surrounding this statement and “the manufacturing sector which remains more resilient than expected, especially in light of the recent power

Positive prospects for the US housing dilemma, as well as less recession woes boosted positive sentiment on world share markets last week.  Read more

TOUGH QUARTER FOR EQUITIES & PROPERTY ALMOST OVER Q1 of 2008 thankfully draws to a close today.