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Articles tagged as "Interest Rates"

Solving the diversification dilemma

By Matthew Spencer on 28 Jun 2022

"Don’t put all your eggs in one basket" is a phrase familiar to many of us, and when it comes to investing and minimising risk, it is quite a sensible...

The SARB hikes rates as food inflation threatens to erode the income of the working class

By Thalia Petousis on 19 May 2022

Raising rates by 50-basis points to take the SA repo rate to 4.75%, the South African Reserve Bank (SARB) delivered what may have been a ‘credibility move’....

Food price inflation: Are we watching “That ‘70s Show”?

By Thalia Petousis on 12 May 2022

Unaffordable food and fuel prices are raising developed market consumer inflation to multi-decade highs, while the Federal Reserve recently announced a...

South Africa’s economy at a juncture

By Thabi Leoka on 17 Feb 2022

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

By Tim Acker on 17 Feb 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

By Ben Preston on 17 Feb 2022

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...

Sticking to the slow and steady path of normalisation, for now

By Thalia Petousis on 28 Jan 2022

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

By Sandy McGregor on 27 Jan 2022

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

By Sandy McGregor on 19 Jan 2022

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

By Thalia Petousis on 19 Nov 2021

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

By Duncan Artus on 17 Nov 2021

At a recent Allan Gray local investment update, chief investment officer, Duncan Artus, facilitated a robust discussion with portfolio managers, Thalia...

Orbis: Inflation – the bottom-up case for caution

By Rob Perrone on 09 Nov 2021

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?

By Thalia Petousis on 04 Nov 2021

South Africa should prepare for interest rate hikes given the rising inflationary pressures and global energy shortage currently unfolding. Thalia Petousis...

MPC rates decision: Where to from here?

By Thalia Petousis on 22 Jul 2021

The South African Reserve Bank’s Monetary Policy Committee (MPC) today made the unanimous decision to keep the repo rate unchanged at 3.5%.

Sitting at the bottom of the interest rate cycle, potentially for much longer

By Thalia Petousis on 21 May 2021

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?

By Thalia Petousis on 07 May 2021

Lower interest rates, although a life jacket for those in debt or with home loans, have negative consequences for savers. 

Anaemic rate environment for money market funds

By Thalia Petousis on 20 Oct 2020

We have undoubtedly entered a difficult period for money market funds, with the overnight repo rate at its lowest in South Africa’s history. Meanwhile, other...

COVID-19: Portfolio, economic and investment update

By Duncan Artus on 01 Jun 2020

During February and March, we were active in both the local equity and fixed income markets. This activity reduced during April and May, as we believed the...

Q&A: Understanding the economic context in which we must invest

By Grant Pitt on 27 May 2020

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

By Sandy McGregor on 27 May 2020

The Coronavirus pandemic has caused a massive disruption of global economic activity without peacetime precedent. In a presentation via Zoom webinar, Sandy...

The end of the free lunch

By Mark Dunley-Owen on 17 Apr 2020

There is no such thing as a free lunch. Yet recent times have provided South African savers with something close to this, as risk-free returns from money...

Increasing policy uncertainty

By Sandy McGregor on 20 Jul 2018

With few exceptions, notably India, most countries experienced slower economic growth in the first quarter of 2018. Anecdotal evidence suggests that that the...

SA needs to unlock its 'demographic dividend' by getting the private sector to invest

By Kevin Lings on 18 Jul 2018

South Africa needs to stop looking to government spending as the catalyst for economic growth and should instead foster a more conducive environment for...

Money Market Fund update: Lower yields suggest lower future money market returns

By Mark Dunley-Owen on 26 Apr 2018

It has been good to be invested in money market funds over recent years. The Allan Gray Money Market Fund (the Fund) has returned 7.5% per annum over the las...

Don't let good news headlines thwart your savings plans

By Rob Formby on 06 Apr 2018

Positive sentiment in the country is being fuelled by a change in political leadership, the stronger rand, a higher-than-expected GDP growth rate and a more...

Stable Fund update: Justifying a higher net equity weighting in challenging times

By Leonard Krüger on 03 Nov 2017

Local inflation and interest rates have peaked in the current cycle and South Africa had its first interest rate cut in five years during the quarter. While...

Facing a fiscal crisis

By Sandy McGregor on 13 Oct 2017

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

By Todd Buchholz on 01 Sep 2017

It is always a good time to invest, the question is where...

South Africa’s economic outlook deteriorates

By on 18 Apr 2017

Since the Northern Hemisphere summer of 2016, there has been a worldwide economic upturn. This is the first period of synchronous global growth since the...

The winds of change

By Sandy McGregor on 06 Jan 2017

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

By Gary Elston on 05 Aug 2016

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...

Uncertainty persists

By Gary Elston on 20 Apr 2016

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...

Consumption trends in emerging markets: Opportunities and pitfalls

By Duncan Artus and Tamryn Lamb on 23 Nov 2015

Looking to capitalise on the rise of the emerging market consumer? Beware of the potential pitfalls .

Saving in a rising interest rate environment

By Jeanette Marais on 20 Nov 2015

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...

A simple checklist for domestic asset allocation

By Duncan Artus on 07 Aug 2013

I recently read the fascinating book ‘The Success Equation: Untangling luck in Business, Sports and Investing’1, which explores, how much of one’s success or...

Can the level of interest rates be used to reliably predict investment returns?

By Duncan Artus on 13 Jul 2011

Local and global short-term interest rates are at low levels. This has led to questions about the rationale for holding cash both locally and offshore. We ha...

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