Once you have decided on a retirement date an array of difficult and complex investment decisions awaits you, all of them with far reaching consequences. Provided you are able to fund your retirement with money saved in a retirement annuity (RA) or an employer’s pension fund, the first decision that you need to take on […]
The listed property sector continues to show significant outperformance, despite property funds operating in a ...
December is a time when thousands of South Africans take to the nation’s roads or ...
David Crosoer, Executive: Research and Investments at PPS Investments The last quarter was characterised by ...
It’s that time of year when you may be considering changing your medical scheme. Liberty ...
Adrian Saville, CIO of Cannon Asset Managers, looks at ways to boost the South African ...
- Q: How did you get involved in financial services - was it always something you wanted to do?
- A: Quite randomly after a career in classical music. It was not at all on the radar when I set out.
- Q: Making a good investment decision - does this involve both objective and subjective factors - what are these?
- A: The ideal is to distill the subjective into the objective via an iterative process of conjecture and refutation. But you never start with anything objective, that’s not how the human mind works. Jesse Livermore told us that “it is the guessing that makes a man [sic] sharp… If it wasn’t for the guessing, then we will all have plodding minds like bookkeepers”. This principle drives the scientific method as well. But good decisions ultimately come from the distilled version of the subjective. Preferably after some time in the barrel.
- Q: We now have many years of equity market experience - but how the equity market behaves seems to continue to surprise us - are these surprises real or do we have short memories?
- A: The market lives to fool most of the people most of the time, and the ‘most’ circulates through the whole and leaves no-one unscathed. Remember that the equity ‘market’ is a kind of weighted average of everyone’s behaviour – an immediately after the fact recording of action that has just taken place. Its recursivity will always lead to surprise, no matter how good the memory.
- Q: What have been your best and worst financial moments?
- A: Worst: Not getting the dynamics of the link between the USD and commodity prices quick enough in 2008. Best: Getting it very quickly in the middle of 2008.
I’ve just had my first proper read of the RDR paper. The paper has a lot of detail in it – and a lot to think about. I haven’t met any real surprises (I don’t quite understand proposal Z) – credit to the FSB – in the last year they have gone out of their […]
South Africans are frequently criticised for being notoriously bad savers. This label is borne out by a recent study which shows that only 20% of South Africans have any kind of formal savings with a recognised financial institution. We don’t compare well internationally either: even compared to other BRICS countries South Africa has the lowest […]
By Nyasha Mugadza – PHD Scholar of Entrepreneurial Strategy Process with BDO Innovation It is safe to say that there is broad consensus from academia to practitioners that entrepreneurship has the potential to deliver much needed economic growth, job creation, and ultimately poverty reduction with a vital shift in the Gini coefficient. However, entrepreneurship, more […]
Alexander Forbes Insurance (AFI) warns that some insurance claims may not be honoured because of elementary errors that policyholders can avoid. Gari Dombo, MD of AFI, says one of the most important steps when you take out an insurance policy is to ensure you understand the terms and conditions of your policy so that you […]
There’s nothing more satisfying than starting off a New Year with a little less financial pressure. Some think it’s impossible, but with wise spending habits, anyone can strive towards having financial freedom. “Too many South Africans live on credit, spending more than they earn. Unfortunately this lifestyle is unsustainable, sooner or later this habit catches […]
By Nazmeera Moola, economist and strategist, Investec Asset Management October’s annual consumer price inflation (CPI) rate of 5.9% is very much in line with expectations and should reassure the market that underlying inflation is reasonably contained. The South African Reserve Bank (SARB) will therefore, in all likelihood, keep interest rates on hold tomorrow. Interestingly, going […]
By Tristan Hanson, head of asset Allocation at Ashburton Investments ( @AshburtonInvest) The unexpected announcement on 31st October by the Bank of Japan (BoJ) to increase its Quantitative Easing (QE) program could not have been timed better, coming less than 48 hours after the Federal Reserve concluded their QE program. A week later, ECB President […]
Education has become critically important in South Africa. We all want a quality education for our children to prepare them for life in an ever-changing world. The monthly education cost fluctuates depending on whether your children go to a public or private school. South Africans are preparing for the 2016 school year, having just received […]
An increasing number of South Africans are sending substantial amounts of money offshore each year due to frequent travel, a greater appetite for offshore investing, business interests abroad and a growing trend to educating their children there. The UK has proven to be the popular choice due largely to the similar time zones and legal […]
Ahead of the next meeting of the Reserve Bank’s Monetary Policy Committee (MPC) on 20 November, Jean-Pierre du Plessis, Fixed Interest Strategist at Prescient Investment Management, said there’s a chance interest rates could rise again. Although inflation has retreated to within the Bank’s target range, South Africa’s reliance on foreign capital may mean that rates […]
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- Having a clear understanding of facts more important than trying to forecast the future. -Eric Lonergan 4 days ago
- Is our context of markets today too anchored in the experience of the financial crisis? 4 days ago
- Our perception of risk is very often the opposite of what it actually is - Prudential face to face 4 days ago
- The more you check your portfolio the more likely you are to encounter a loss - prices are volatile! James Montier, LB Behavioral Investing 1 week ago
- Lots of information may make us overconfident, not more accurate 1 week ago
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Newsletter 20 November 2014: Internal rate of return, 4 levels of diversification
As we contemplate the outcome of and comments from the Reserve Bank’s final MPC meeting […]
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