An interesting disconnect is going on in South Africa. On the one hand, you have economists who are almost universally negative, reducing their estimates of GPD growth and pointing to falling consumer confidence and lower production. On the other hand, you have rising share prices, which imply higher company profits in the future, and that implies improved consumer spending and better GDP growth. Read More
The currency of a country is like the shares of a listed company. If the company is expected to do well and make profits, then its shares will go up – and vice versa. The same applies to a currency. If the country is perceived as being well-managed and doing well, then its currency will strengthen against other currencies – and vice versa. Read More
With all the turbulence on the South African political scene it has been difficult to discern the direction of the JSE over the past year. The JSE Overall index has moved sideways while the markets of the world, and especially Wall Street have been making new highs.
The South African investment environment is never boring. The past week has seen many developments which are having, or may have, an impact on the share market. Most of them are local, but some are overseas.
As a private investor, you are really trying to catch onto the coat-tails of a proven entrepreneur and then go along for the ride. The secret is to find an appropriate entrepreneur with solid experience and then jump on board as early as possible.