“Uncertainty, volatility and complexity is always present in investment markets. It is not unique or rare in some way and it does not ‘rear its head’ like some kind of scary monster. The fact is that positive and negative price movements are...
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Offshore investing in the middle of Armageddon
Over the last year investment gurus have told us to take advantage of a relatively strong rand and lower global valuations by investing offshore. Since then the world has gone pear-shaped once again with negative real interest rates, an investment...
Are guaranteed funds meant for 30 year olds?
“What investments should one consider for a ten year period? The 10 year investments I took out with Old Mutual are in a smoothed performance bonus fund and optimised fund with guarantee,” asks Vaneshen Maya replies: In terms of the Old Mutual...
How to save R150 000 in seven years
"I am 23 years old and I earn R7000 a month. I want know where and how much to save so that I can buy a car worth R150 000 by the time I am 30 years old. I am thinking of buying a house too but I am tired of borrowing a car. At least my parents are...
Lessons on investing from John Mauldin
After listening to a very entertaining and informative talk by financial expert John Maudlin, who wrote EndGame a book on the global debt spiral, I was struck by how US/Euro centric his observations were. Yes we know the developed world is...
Why the markets are so volatile
The rout in global financial markets is continuing, characterised by extreme swings of up to 5% in some markets. According to Dr Prieur du Plessis, chairman of the Plexus group and author of the Investment Postcards blog, there are a couple of...
Investors are ignoring value stocks
Geoff Blount, CEO of Cannon Asset Managers, shows that the market has all but abandoned value stocks over the last few years with most investment managers shifting their portfolios to more expensive growth stocks. This will have significant...
Kicking off a financial plan with a lump sum
“I am ready to formulate a financial plan and want an idea of where I should be investing my money for a real return. Once I have my lump sum should I buy a property, purchase shares in a start-up company that looks very promising or invest in...
The best way to buy gold
"I have received marketing material from Investcare Amathubagold and I want to know if this is a good investment opportunity," asks Henry. Investcare Amathubagold describes itself as a Precious Metals provider and offers a Precious Metal Investment...
Jargon buster: Asset swaps
When you invest globally, you can invest in either rand-denominated (asset swap) or foreign domiciled funds, which are denominated in foreign currencies. According to Stephan Schalekamp, manager of fund research and development at Stanlib, an...
Previous Articles
The difference between a money-market and unit trust account
“What's the difference between a money market account and a unit-trust money-market account?” asks Roderick Maya replies: A money-market account offered by a bank is simply a bank account with a more aggressive interest rate. It's an investment account rather than a...
Am I saving enough?
“I am a 31 year old dedicated saver and I have two main savings besides my pension and I want to know if they are the right investments. I've been increasing these savings by 10% each year and putting some into my bond. Do you think this will give me the right returns...
The impact of retirement caps on high earners
In his budget address, Finance Minister Gordhan proposed that from March 2012 all employees will be allowed to deduct up to 22.5% of their taxable income for contribution to retirement funds up to a maximum of R200 000. While this may bring pension and provident fund...
Think twice before making the trade
Investors should perform a pre-mortem on their investment choices, before putting a trade into action. That way, they may find themselves spotting 30 percent more alternatives – avoiding what could prove to be a disastrous investment decision. That is the message from...
The power of compounding interest
"I recently read an article that stated that by investing R500 per month you can save R2.3-million. You said that this is the power of compound interest growth although one has only contributed R60 000, the rest is all growth from the investment itself. Please explain...
RSA Retail Bond Restart Option: The best cash investment
Many investors will by now be familiar with the RSA Retail Bond range offered by National Treasury that offers aggressive interest rates for savings between R1000 to R5 million. What few people are aware of however is that National Treasury offers a Restart option for...
Will gold shares benefit from a higher gold price?
For quite some time now gold analysts have been advising investors to invest in physical gold rather than gold companies as the costs of mining gold have negated much of the benefit of the rising gold price. However Kobus Nell, Resources Analyst at STANLIB argues that...
Smart investments for pensioners
Investors have endured continuously falling short-term interest rates, which are now reaching 30-year-lows. This begs the question as to what pensioners should do with their investments in the fixed interest domain, given the current environment. Pensioners are...
What do rich people know that we don’t?
South Africa is one of Africa's richest nations and we are seeing an increase in wealthy families. These families generally have one aim in mind – to grow wealth and, where possible, pass it on to future generations. Leaving a legacy is something we'd all like to do...
Market will still deliver returns
I have been avoiding adding to the already uncountable amount of column space dedicated to fund managers’ views on the recent market correction and importantly the prospects lying ahead. But, like the proverbial moth circling the flame, I have found the attraction...