Trade Wars 2.0
Remember Trump’s trade wars from his first term? One tweet from the White House, and the markets would go haywire. Up, down, sideways—pure chaos. Well, here we go again. This time, though, it’s not China (yet). Instead, Canada and Mexico are in the crosshairs. Tariffs are being announced, removed, reinstated—rinse and repeat. No […]
Diversification comes with FOMO
There are two sides to diversification. On one hand, it ensures you’re never 100% exposed to the worst-performing asset class. On the other, it means you’ll never have 100% exposure to the best-performing asset class either. There’s always a trade-off. It sounds obvious, but in practice, it’s difficult. When a particular sector or […]
When is the best time to invest in the market
The JSE is currently at all time highs. The US market is also at all time highs. If you have some cash, is it worth waiting for a pullback before investing? This was the strategy of the past 2 years that hasn’t really worked out. The year 2023 will go down as the year of […]
Market returns are good enough
It’s been a strong start to the year for most markets. Despite all the uncertainty in the world, markets have performed well over the past 12 months. First, let’s take a look at the rand. I really like the chart below from Anchor Capital, which provides a longer-term perspective on the currency’s behaviour. […]
How to Build a Portfolio
When people think about building an investment portfolio, they often jump straight to picking funds or stocks. But that’s the last step—not the first. A well-constructed portfolio starts with understanding you—your life, your family circumstances, and where you want to be in five, ten, or even thirty years. Without this foundation, any investment recommendation is just […]
Is the US in a Bubble
The chart below shows the performance of the Magnificent 7 stocks in 2023 and 2024—Google, Amazon, Tesla, Nvidia, Facebook, Apple, and Microsoft. These companies have been the primary drivers of market gains over the past two years. These stocks have significantly outperformed the global index, as represented by the MSCI ACWI and the ACWI Equal-Weighted indexes. The […]
The Ninety One Outlook for 2025
A few days ago, I attended the Ninety One Taking Stock webinar. Ninety One is one of South Africa’s largest asset managers, and their flagship funds have performed well over the past decade. I always enjoy their presentations as they offer insights from highly resourced asset managers. These webinars provide a view into their thinking—what we’ve […]
Don’t Be a Closet Indexer
When it comes to investing, many active funds claim to offer the edge of professional management, but a surprising number are little more than glorified index funds. These so-called “closet indexers” mirror the performance of a benchmark while charging the high fees of active management, leaving investors with the worst of both worlds—passive returns at […]
Put These Charts on Your Wall
Keeping a few charts that showcase extreme market behaviors on your wall can serve as a valuable reminder: in markets, nothing is ever guaranteed. There’s no such thing as “can’t,” “won’t,” or “has to” when it comes to price movements. The market operates on its own terms, often defying expectations. It reflects the real-time […]
Don’t invest in a Ponzi Scheme
Mistakes are an inevitable part of investing. The key is to learn from them and avoid making the same missteps again. However, some errors—like falling victim to fraud, scams, or Ponzi schemes—can be catastrophic, leaving no path for recovery and wiping out a lifetime of savings. Jason Zweig recently shared a tragic example: investors who […]
