ARTICLES

PDSNET ARTICLES - AUGUST 2019

Shoprite

The price of Shoprite shares on the JSE has now tumbled to far less than half of its peak value of R275.50 achieved on 7^th March 2018. Consider the chart:

There are many reasons that could be advanced for this downward trend, from the bad economic environment to the difficulties with hyperinflation in Angola (where Shoprite has 60 stores). But none of these reasons

Wall Street Analysis

Private investors in South Africa should always keep their eye on what is happening on Wall Street – because the long-term trends on stock markets around the world, including on the JSE, begin there. As the old saying goes, “When Wall Street sneezes, the rest of the world catches a cold”. The S&P500 represents the weighted average movement of the 500 largest companies trading on Wall Street and

Gold Surges

Six weeks ago, on 24^th June 2019, we ran an article about gold under the heading “New [glossary_exclude]Gold[/glossary_exclude] Bull”. In that article we drew attention to the fact that gold in US dollars had broken convincingly up out of a long-term wedge formation and we suggested that it was probably entering a new bull trend. Since then

Banks

The back-bone of the South African economy is the banking sector – dominated by the “big five” banks – Standard, FNB, Nedbank, ABSA and now Capitec. Banking shares offer private investors a very solid long-term investment. Mostly they are relatively safe investments which grow steadily as the economy grows. It is important to understand that they are service companies and unlike manufacturing

Homework

On 1^st August 2019, Business Day carried an article on the performance of asset managers and how difficult it is to choose a winner from among them. In that article they commented that research done by Goldman Sachs in the US showed that, “competing managers, no matter how much they purported to have unique strategies all tended to pile into the same bundle of high-performing stocks”. In May of 2016, for