Central Banks
The functions of a central bank are to maintain the stability of the country’s currency and to ensure growth. Unfortunately, these two objectives are mostly mutually exclusive because growth tends to cause rising inflation while controlling inflation means taking the wind out of the economy’s sails. When the central bank becomes concerned about inflation, which is often caused by excessive demand, it raises interest
Spur
The decision to buy into a share is often scary. What if the share falls after you have bought if? You may then have to execute your stop-loss and lose money. There is a tangible feeling of risk. Obviously, you want to buy a share when it is at a low point in its cycle – after it has fallen so that you can get it cheaply. But when a share falls there is always a reason – and you might be concerned that
Our Response to the Stockman Article
This article is in response to a request for our opinion about an interview with David Stockman from one of our clients – click here to read what Stockman says. The adherence to Keynesian economics means that whenever there is any kind of stock market crash, the central banks step in and compensate
Omnia Breaks Up
On 12th July, 2019, we carried an article about Omnia. The essence of that article was that Omnia was a large blue chip chemicals company which had dominant positions in agriculture, chemicals and explosives throughout Africa. This company took a significant risk by buying two companies, Umongo Petroleum and Oro Agri for around R2bn – which over-extended