Articles tagged as "Inflation"
Food price inflation: Are we watching “That ‘70s Show”?
Unaffordable food and fuel prices are raising developed market consumer inflation to multi-decade highs, while the Federal Reserve recently announced a...
What price are we paying for the Russia-Ukraine conflict?
As investors brace themselves for the impact of higher prices on their portfolios, Horacia Naidoo-McCarthy discusses how the prevailing environment may impac...
South Africa’s economy at a juncture
During the recent Allan Gray webinar, Perspectives and positioning for 2022, Dr Thabi Leoka, economist and founder of Naha Investments, shared insights on th...
Q&A: Perspectives and positioning for 2022
Amid a rising inflationary environment and ongoing uncertainty, many investors are struggling to take a long-term view. During the recent Allan Gray webinar,...
The power of perspective in an expensive market
Historically, every decade has its “poster child” asset class. In the 70s it was gold, the 80s Japanese shares, and materials shares in the noughties. At the...
Save now for your child’s education to avoid future pain
Putting aside money every month to fund your child’s future studies may seem like a huge ask, but it will be worth it in the end, especially in light of...
Sticking to the slow and steady path of normalisation, for now
At the January meeting of the Monetary Policy Committee (MPC), South Africa’s repo rate was raised by another 25 basis points (bps) to 4.00%.
The transition into the post-pandemic world
It is remarkable the extent to which the future is hidden from us. We all conduct our lives largely in terms of our experiences in the recent past, assuming...
Global economic recovery slower and more complex than expected
The global recovery from the severe economic contraction in the first half of 2020, which followed the initial outbreak of the pandemic, has proved to be bot...
The divided Committee draws a line in the sand, but gradually
At the November meeting of the Monetary Policy Committee (MPC), South Africa’s repo rate was raised by 25 basis points (bps) to 3.75%. The recent dissenting...
Q&A with Allan Gray portfolio managers
At a recent Allan Gray local investment update, chief investment officer, Duncan Artus, facilitated a robust discussion with portfolio managers, Thalia...
How to invest for the possibility of higher inflation and interest rates
The probability that the world is moving into an environment of higher inflation is increasing. An inflationary environment requires investors to think...
Orbis: Inflation – the bottom-up case for caution
If headlines are to be believed, people are gravely concerned that inflation will rise. If market prices are to be believed, people are quietly convinced tha...
Can we expect an interest rate hike in November?
South Africa should prepare for interest rate hikes given the rising inflationary pressures and global energy shortage currently unfolding. Thalia Petousis...
Economic recovery accompanied by a surge in inflation
With increasing vaccinations economic activity is returning to pre-pandemic levels and, while there may be further waves of infection, governments are learni...
Active management: Potential for a comeback in a divided inflationary world
For most of the 2000s, the developed world has been characterised by disinflation and falling interest rates. This is despite a large increase in leverage, t...
Inflation returns
Prices are on the up in the wake of the COVID-19 pandemic. The question is, will deflationary conditions resume as global economic conditions normalise or is...
MPC rates decision: Where to from here?
The South African Reserve Bank’s Monetary Policy Committee (MPC) today made the unanimous decision to keep the repo rate unchanged at 3.5%.
Q&A with portfolio managers from Allan Gray and Orbis
The global recovery is underway as markets rebound from their March 2020 lows, but the current pandemic is far from over, leaving many investors questioning...
Sitting at the bottom of the interest rate cycle, potentially for much longer
The South African Reserve Bank’s Monetary Policy Committee (MPC) voted in May 2021 to again keep the repo rate unchanged at 3.5%, its lowest level since the...
Where to from here for interest rates and money market returns?
Lower interest rates, although a life jacket for those in debt or with home loans, have negative consequences for savers.
Global recovery underway
The world is recovering from the pandemic and 2021 should see strong global economic growth. The epicentre of the recovery is now the United States, where th...
The state of the economy
In a recent Q&A-style webinar hosted by Allan Gray’s Vuyo Nogantshi, Allan Gray’s Sandy McGregor and the Reserve Bank’s Rashad Cassim and David Fowkes examin...
The dangers of printing money
Modern Monetary Theory, or MMT as it is often called, is a new term for an old idea. Its proponents argue that a state which issues fiat money does not have ...
Money lessons from the arcade
Throughout Heritage Month, South Africans are encouraged to celebrate their culture and the diversity of their beliefs, histories, and traditions. In the...
Q&A: Understanding the economic context in which we must invest
As investors, we must understand the economic consequences of COVID-19 and the impact on different asset classes. Grant Pitt, joint head of Institutional...
The monetary and fiscal response to the COVID-19 crisis
The Coronavirus pandemic has caused a massive disruption of global economic activity without peacetime precedent. In a presentation via Zoom webinar, Sandy...
The world after the COVID-19 pandemic
We are witnessing a global economic collapse without precedent in modern times. As investors we must think about what the world will look like when the...
2020 Budget: Managing the wage bill and fixing Eskom's credibility
The National Treasury faces formidable challenges in preparing the Budget for the 2020/21 fiscal year, which will be presented on 26 February. Projections...
Inflation
Inflation is a phenomenon of great importance to investors. It is subject to intense scrutiny but is not well understood. Sandy McGregor offers his perspecti...
Global growth slows
Over the past year, global economic growth has slowed. International trade volumes have contracted. This slowdown has many causes but has been significantly...
How not to break the bank this festive season
The end of 2019 is fast approaching and with many looking forward to downtime during the festive season, this shouldn’t mean breaking the bank, according to...
Making sense of the rand
Like other emerging market currencies, the rand has seen periods of prolonged fluctuation since September 2018 but has remained relatively stable over time....
Trade wars
In recent months, we have observed increasing uncertainty and concern among our clients about what impact rising international tensions, particularly the tra...
PART 1: How to overcome the growing cost of education
Do you feel overwhelmed at the thought of how you will finance your children’s education? You are not alone. We all want to empower our children by giving th...
PART 3: What are the best investment options for education savings?
With the cost of education soaring, relying purely on your salary to finance your children’s education is becoming increasingly difficult. Consider saving fo...
PART 2: Saving for education – later is still better than never
When it comes to paying for the best education for your child, making small sacrifices early on and taking a long-term approach to investing is the smart thi...
Global business conditions deteriorate
Negative news about the global economy persists. Purchasing manager indices continue to signal a widespread deterioration in business conditions. Even in the...
Is a money market fund right for you right now?
Money market unit trusts have become popular as they appear to provide a safe, secure and reliable haven for your investments. During times with extreme...
Global economy losing momentum
After two years of strong synchronous growth the global economy is losing momentum. Almost without exception the most recent purchasing manager’s indices are...
SA needs to unlock its 'demographic dividend' by getting the private sector to invest
South Africa needs to stop looking to government spending as the catalyst for economic growth and should instead foster a more conducive environment for...
Business confidence improves in South Africa
After 18 months of accelerating growth, the momentum of the expansion of the global economy slowed in the first quarter of 2018. It is noteworthy that an...
Facing a fiscal crisis
The synchronised global economic expansion continues to gain momentum. World trade is growing and increasing demand is putting upward pressure on commodity...
Invest in stocks with dividends, but put stop losses in place
It is always a good time to invest, the question is where...
SA economy in the doldrums as the rest of the world picks up
Since January, domestic demand in South Africa has been very weak, the clearest evidence of which has been poor retail sales. The consumer is no longer in a...
The winds of change
While the election of Donald Trump as the next president of the United States was not expected by investors, it does not seem to have been unwelcome: both t...
Money Market Fund update: Rising inflation and low growth continue to cause concern
Global yields have fallen after Brexit became a reality when the UK voted to leave the EU. This uncertainty has decreased the expectation that the US Federal...
Stable Fund update: How to invest in ‘interesting’ times
‘May you live in interesting times' is an English expression which many believe to be a translation of a traditional Chinese curse. The expression seems to...
The economic consequences of political decisions
The vote by the British electorate in support of leaving the European Union (EU) took markets by surprise. The immediate impact was a strengthening of the US...
Uncertainty persists
The increased uncertainty that arose in December of last year has persisted throughout the first quarter of 2016. The current political climate and the threa...
Saving in a rising interest rate environment
The South African Reserve bank has announced an interest rate increase from 6% to 6.25% confirming that the country is in a rising interest rate cycle. Whi...
Understand the impact of inflation
There are different types of investment risks, some more obvious than others. One risk that people often forget about is the risk that their invested money...
Consider your lifestyle inflation when saving for retirement
While most investors seem to understand the need to contribute consistently to their retirement funds, and to start saving as early as possible, many investo...
Make sustainability a priority when planning your retirement income
Over the last 20 years pension funds have increasingly passed the responsibility for generating income after retirement on to retirees and insurers, rather...
Investing for education
As Wanita Isaacs joins the ranks of parents investigating ways to afford the best possible education for their children, she learns that, although long-term...
Planning for income post retirement
If you are knocking at 60's door and fall into the small minority of South Africans who have saved enough to retire comfortably, you may be planning your...
Delayed gratification is priceless
Acknowledging your future financial needs and making concrete plans to meet these is a discipline that will benefit you and your family enormously. It is the...
It is worthwhile starting to save early - a little can go a long way
You can substantially improve your financial situation if you start saving sooner rather than later and you will be a step closer to being financially...
The long-term outlook for the South African bond market
As a bond investor you need to ask yourself two questions: are your inflation expectations reasonable, and will the potential real return be sufficient? Andr...
Deflation
It seems the world may divide into two distinct camps: the mature economies gripped by deflation and stagnation, and the emerging markets, which continue to...
