Corona Correction Part II

Since our article “The Corona Correction” at the end of January 2020, the disease has progressed significantly, spreading to Europe and particularly to Italy where 10 cities have been quarantined and there are now 1146 confirmed cases.
As a private investor, you need to consider just how serious this pandemic is likely to become and exactly how much impact

Silver Ready to Go

An article by one of our customers, Koot Jordaan:
At the moment, the JSE is not a good place to be, despite all the bargains. Nobody is bargain hunting in ANC country lately. The only sectors that are booming are gold and PGM’s, due to the extraordinary performance of palladium. These are out of the starting blocks already, but silver, another precious metal, is just getting ready


Private investors in 2020 are faced with a domestic economy that is performing badly. South Africa is missing out on the world-wide boom in commodities because of our penchant for “shooting ourselves in the foot” economically.
In this environment it is quite natural for investors to seek solid safe investments that offer a decent return – preferably in a hard currency.

The Future of Inflation

Throughout the world, especially the first world, inflation is subdued. In the G7 countries, inflation remains stubbornly under 2% despite the efforts of central bankers. At the same time, in most first world economies, unemployment rates have fallen below the level that most economists consider to be “full employment”. Central banks world-wide are all focused on getting inflation back above 2%

A Story About Focus

The sale of CNA by Edcon, as part of its rationalisation and re-focus, is long overdue. There has really never been a good reason for Edcon to own CNA because there are no synergies between the two businesses. Edcon is in the clothing and fashion business – what has that got to do with what CNA does?
CNA itself seems to us to be completely defocused. What business is it in? Do they sell stationary? Because, if they

The Confidential Report - February 2020


The impression may be given that the world economy is in a much better place than it was 6 or 7 years ago mainly because of the strong recovery in the US economy and the record-breaking S&P500 index. However, it is interesting to note that in November 2019 there was approximately $15 trillion being held in first world government bonds at negative real rates of interest. These

The Rebosis Saucer

Rebosis (REB), the first substantially black-owned real estate investment trust (REIT) on the JSE, over-extended itself and ended up with a loan to value ratio (LTV) of over 64%. Any REIT with an LTV above 40% is considered too highly geared, especially in an economy like South Africa’s that is in difficulties. It has had to retreat from its R1,2bn investment in New Frontier in the UK for a miserable R700m – and blamed