The performance of share markets is influenced by a variety of factors, including economic growth, inflation, interest rates, and government policies. For example, a growing economy with low inflation and interest rates is generally seen as favourable for equity markets, as companies are more likely to generate higher profits and investors are more willing to take risks.
However, it is worth noting that the South African equity market is not highly dependent on the domestic economy. Research shows that South African company profits are less driven by the South African economy than you would think.
Just over one-quarter of the total revenue generated by JSE-listed companies comes from South Africa. Revenue mostly stems from Asia Pacific and Europe as illustrated below:
Source: M&G Investments
The reason I point this out is that in our South African economic, political, and social climate, it’s important to remember that the South African stock market is not wholly reliant on the South African economy for it to flourish and for returns to be decent. It also illustrates that your local investments may have more indirect global exposure than you realise. I find that this provides comfort to investors when South African sentiment and morale are low.
We are taking our children (5 & 7) to the Kruger National Park this weekend, and I cannot wait to spend time with them in the bush. Seeing animals through my children’s’ eyes give me a new appreciation for wildlife, as though it’s my first time seeing a zebra. Each animal needs to be looked up in the book, ticked off on a checklist and selected in the sticker book. The children love talking about the animal’s behaviour, food, and habitat.
A child’s curiosity is wonderful and often lost by the time you’re an adult. One adult who hasn’t lost it is Nathan Myhrvold, often referred to as “the most curious man in the world”. He is a prominent figure in the fields of technology, business, and science. He is widely recognised as a visionary entrepreneur (having played a key role in the development of Microsoft) and as someone who has helped shape the landscape of modern technology. In addition to his contributions to the world of technology, Myhrvold is also a respected scientist, with a background in physics and mathematics, and has published numerous papers on a wide range of topics. He is a passionate advocate for the importance of science education and the need to address global challenges such as climate change.
In this fascinating podcast, Myhrvold unpacks some pressing questions facing the world. Where will technology take us in the future? Why are humans so bad at addressing global warming problems? And what might the solution be?
When I see curiosity in my children, I am delighted. When I witness it in a person like Myhrvold, I am inspired. Perhaps this is what it means to be young.
We are the only animals that have the capacity for belief. According to Agustín Fuentes, a professor of anthropology at Princeton, belief is when we take our experiences and our imaginations and put them together into ideas or ideologies or perceptions and commit to them; commit to that idea so fully, that it becomes reality. In this video, Fuentes discusses the complexities of our beliefs.
Personal beliefs are shaped by the way we grow up and our social interactions. The challenge is that your beliefs may be in direct conflict with someone else’s. We often see this playing out in political and economic views in South Africa and across the world.
For example, a belief in the importance of economic development may conflict with a belief regarding environmental sustainability and conservation. Or a belief about the importance of political freedom and democracy may conflict with a belief about the need for strong leadership and stability.
Belief powerfully structures our reality. Fuentes argues that this will be one of our biggest challenges in the future. Can we bring science, belief, tradition, and creativity together in a harmonious way?
“Oenophilia is a love of wine. In the strictest sense, oenophilia describes a disciplined devotion to wine, accompanying strict traditions of consumption and appreciation. In a general sense, however, oenophilia simply refers to the enjoyment of wine, often by laymen.”
Referred to as the “poor man’s Pinot Noir”, Cinsaults are often cheaper wines but with similar characteristics to Pinot Noir. It’s a light to medium-bodied wine, with notes of red fruits like strawberry, raspberry, cherry, and pomegranate.
But don’t be fooled by this nickname! South African Cinsaults are seriously good wines. The Swartland dominates in this space and produces some of the best wines in the country.
As autumn starts rolling in, why don’t you try one of these special wines? They’re easy to drink and before you know it, you will be hooked.
Affordable options are:
- AA Badenhorst Papegaai
- Natte Valleij Cinsault
Some seriously impressive options include:
- Savage Follow the Line
- AA Badenhorst Ramnasgras Cinsault
- Eben Sadie Pofadder
- Miles Mossop Chapter One Cinsault
I hope you enjoyed this month’s edition.