News

The investment bubbles in this article demonstrate that if something looks too good to be true, then it probably is. Bitcoin, for example, has seen tremendous highs and lows. That’s why we take a pragmatic approach, diversifying and creating portfolios designed to rise with the market but also to be resilient if the market falls.

From the rapid nosedive following lockdowns in March 2020 to springing earnings in the first half of ‘21, we’ve moved through this business cycle at top speed. It’s time to take a look at potential market implications and ask ourselves: does economic payback await?

A recent report shows sales of electric vehicles across the world are growing significantly, we find out why this has happened, who the big players are and what the future holds.

South Africa’s largest insurer Sanlam Ltd has sold its UK wealth division (Sanlam Wealth) to funds managed by Oaktree Capital Management, L.P. (“Oaktree”), for a total consideration of £140 million. The transaction is subject to customary regulatory approval and is expected to close in the first quarter of 2022.

After weeks of strength, markets have taken a pause to contemplate this week as investors weigh Biden’s proposal for higher taxes on the wealthy to fund his new social plan. With equity sentiment somewhat
stretched, it doesn’t take much for markets to consolidate and the stall this week is perhaps overdue after weeks of relentless drives upwards.

The 2015 Paris Agreement laid plans to restrict global warming to no more than 1.5 degrees Celsius above pre-industrial levels by 2100. But we’re moving too slowly; scientists think warming in the 2–4 degree range is now more probable.

Confidence that has permeated markets for weeks appeared to lose momentum this week as nonfarm payrolls and inflation figures caused the charging bull to take a moment to catch its breath. Nonfarm payrolls (a measure of US employment) fell far short of expectations whilst inflation printed its highest month-on-month gain since 2008.

Fiscal conditions are incredibly accommodative: interest rates are lying low; credit is freely available; and GDP is as if Covid never happened. The time to taper is nigh.

The US dollar continued to fall from its peak at the end of March. This falling dollar is part of the rising inflation trend that is unlikely to end any time soon. Minutes published by the US Federal Reserve stated that “an unspecified number of committee members” had mooted discussing scaling back the central bank’s monthly bond purchases in a future meeting

Markets were relatively quiet this week, as largely positive economic news flow did little to move asset prices in one direction or the other. Equities advanced slightly on a New York Times report claiming that US President Biden will seek $6 trillion in US spending in the next fiscal year; the White House will unveil its full proposal later today.