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June global market commentary: Major global markets end 2Q20 on a strong footing

Global equity markets posted their third-straight positive monthly performance to end 2Q20 on a strong footing. Developed markets (DMs) had their best quarter (MSCI World +19.4%) since 2Q09, while the S&P 500 Index recorded its best quarter (+20.5%) since 4Q98. June started on a positive note with payroll data showing that US employers had added […]

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Despite COVID-19 induced volatility and uncertainty, global markets and the JSE jump in June

In A Tale of Two Cities, Charles Dickens wrote “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, …” – an apt description for these contradictory times and for US and most global markets over this past quarter. While US […]

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Offshore currency exposure: Evaluating US dollar alternatives

Executive summary Most investors with an allocation to offshore stocks and bonds will find themselves heavily skewed towards US dollar-denominated assets. Investors frequently ask us if they should diversify some of their global cash holdings away from US dollars. For the purposes of this exercise we will focus on the four most liquid non-US dollar […]

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Sasol organisational update: Positive but no specifics on asset disposals

On Thursday (18 June), Sasol released an updated response to the oil price volatility and the COVID-19 pandemic. The firm said that it would start consultation with its workforce on possible retrenchments after deciding on an organisational shake-up that will see two core businesses emerge. Sasol’s share price has been under severe pressure this year […]

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The impact of inflation on your investments

When demand and spending prevails over the production of goods and services, resulting in producers further increasing prices, it is a catalyst for sustained inflation. The oversupply of money being circulated in an economy that exceeds what is needed for transactions also decreases the rand’s purchasing power. The COVID-19 lockdown is likely to lead to […]

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What causes inflation and deflation?

Inflation is when prices of goods and services rise. Conversely, deflation (or negative inflation) occurs when the prices of goods and services decline, and the inflation rate falls below 0%. Both can be damaging to a country’s economy, depending on the underlying reasons and the rate of price changes. While we focus on inflation and […]

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May global market commentary: Most major markets maintain upward momentum/ Paychex, ICICI Bank

Global markets maintained their momentum through May, with the MSCI World Index up another 4.8% MoM (after an 11% rally in April). Major economies headed down a path of easing movement restrictions and restarting economic activity as central banks continued to apply record levels of monetary stimulus and governments applied similarly unprecedented levels of fiscal […]

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PGMs and diversified miners push the FTSE JSE All Share Index to close May slightly higher

The adage “sell in May and go away”, based on the theory that the period from November to end April has significantly more robust stock market growth, on average, did not seem to hold sway last month as US equity markets ended the month with healthy gains. This was despite continued concerns around the impact […]

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Proposed US listing restrictions on Chinese companies: What we know so far

On 20 May, the US Senate passed a bill that could block Chinese (and other foreign) companies from selling shares on the various US stock exchanges. This comes amid rising tensions between the two superpowers over the COVID-19 pandemic (close to 100,000 people have died in the US), technology, trade, and the Luckin Coffee accounting […]

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