2008 June » Investment Postcards from Cape Town

Archive for June, 2008

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Monday, June 30th, 2008

SA credit growth showing signs of slowing

By Kevin Lings
In May 2008, SA growth in broad money supply (M3) was recorded at 20.9% y/y, down fractionally from 21.1% y/y in April. The market was expecting growth of 20.4% y/y. In May, claims on the private sector rose by a still relatively robust R15.9bn. Overall, while M3 growth remains high, there is some […]

No Comments » - Posted in South Africa by Prieur du Plessis

Monday, June 30th, 2008

Wall Street’s roller coaster

Hat tip: Barry Ritholtz’s The Big Picture, June 24, 2008.

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No Comments » - Posted in Humor by Prieur du Plessis

Sunday, June 29th, 2008

Words from the (investment) wise for the week that was (June 23 – 29, 2008)

Greetings from Slovenia. Renewed fears of inflation and slower growth caused by record energy costs played havoc with global stock markets last week, resulting in the Dow Jones Industrial Average being on track to record its worst June since the Great Depression. As stocks suffered, gold bullion surged and government bond yields dropped due to safe-haven buying. Read all about this in my weekly review, highlighting some thought-provoking news items and quotes from market commentators during the past week.

4 Comments » - Posted in Money, Markets, Investment by Prieur du Plessis

Friday, June 27th, 2008

Dow Jones: Worst June Since Depression

Equity investors are facing their worst June since the Great Depression on the back of concerns about the health of Western banks, the rise in oil prices, deteriorating economic growth and worsening inflationary pressures.

1 Comment » - Posted in Money, Markets, Investment by Prieur du Plessis

Thursday, June 26th, 2008

Video: Buffett Concerned About “Stag” and “Flation”

Warren Buffett said yesterday that he was concerned about “stagflation”, or slowing in the US economy while inflation accelerates. “I think the ‘flation’ part will heat up and I think the ’stag’ part will get worse.” This video clip makes for interesting viewing material.

1 Comment » - Posted in Money, Markets, Investment by Prieur du Plessis

Tuesday, June 24th, 2008

Picture du Jour: Sun Rising Over Japanese Stocks

The sun may be rising over Japanese stocks. After years of underperformance, the tables seem to be turning in Japan’s favor. Although the Japanese stock market will probably not escape the leash effect of Wall Street’s bearish sentiment, it should be in a position to better fend off downside risks.

3 Comments » - Posted in Money, Markets, Investment by Prieur du Plessis

Sunday, June 22nd, 2008

Words from the (investment) wise for the week that was (June 16 – 22, 2008)

A ton of doubt … Sentiment deteriorated further during the past week as oil prices rebounded, more bad news in the financial sector surfaced, economic woes mounted and inflationary pressures intensified, compounding already-jittery investors’ anxiety. Read all about this in my weekly review, highlighting some thought-provoking news items and quotes from market commentators during the past week.

2 Comments » - Posted in Money, Markets, Investment by Prieur du Plessis

Friday, June 20th, 2008

SA consumer under enormous pressure

By Kevin Lings
For a number of months we have been highlighting the enormous and increasing pressure on the consumer. This follows a four-year period of astounding growth in consumer income and spending, as well as an unprecedented increase in consumer debt. The release of the Q1 2008 SARB Quarterly Bulletin yesterday provides some additional evidence […]

No Comments » - Posted in South Africa by Prieur du Plessis

Friday, June 20th, 2008

SA current account deficit increased to 9% of GDP in Q1 2008

By Kevin Lings
In Q1 2008 South Africa recorded another shock current account deficit, equivalent to 9.0% of GDP. This compares with a deficit of 7.5% of GDP in Q4 2007 and 8.1% of GDP in Q3 2007. In value terms, the current account deficit widened to a record R194.7 billion from R157.7 billion in Q4 […]

No Comments » - Posted in South Africa by Prieur du Plessis

Friday, June 20th, 2008

Jeremy Grantham: No Quick End to the Pain

This post reports on an interview of The Globe and Mail with highly regarded money manager Jeremy Grantham. He discusses the lie of the investment land, providing some stimulating and thought-provoking input. In short, it may not be 1929 all over again, but he sees no quick end to the pain.