I aim to share snippets of what I read, listen, and pay attention to. It’s mostly related to personal finance, markets, and wine - but sometimes not.
Look
Industry flows (funds flowing into and out of unit trust funds) can often signal trends and highlight investor sentiment. They also tend to signal value opportunities, particularly during periods of market pessimism.
In South Africa, the unit trust industry data shows that many investors are overexposed to income funds (low risk assets) and have insufficient exposure to equity funds. This is particularly prevalent in the retirement space, where retirees reduce investment risk due to market uncertainty.
This cautious approach can be catastrophic. If investors are too conservatively positioned, their monthly income withdrawals may not keep up with inflation, increasing their risk of running out of money earlier than expected. Inflation can only be tackled by allocating a large portion of your holistic portfolio to equities (a growth asset).
As powerfully illustrated by Coronation below, it’s not always easy navigating volatility - but compared to running out of money it’s a discomfort worth living with.
Listen
The future of work is poised for significant transformation, driven by rapid technological advancements, particularly in artificial intelligence (AI). How quickly is change affecting the world of business? Notably, 89% of the Fortune 500 companies from 1985 are no longer there, underscoring the need for businesses to be adaptable and innovative. While technology will play a pivotal role, human elements such as creativity, empathy and self-awareness will become essential. This little video doesn’t provide any answers, but it makes you think about the future of work. How will success be defined in the future?
Learn
As parents, we all want to set our kids up for success - and that includes helping them build good habits early on, especially when it comes to managing money and making thoughtful decisions. This research dives into how kids learn and develop self-regulation skills, like controlling impulses, planning ahead, and understanding value. The big takeaway? Teaching kids about money isn’t about sitting them down for a formal lesson. It’s about weaving it into everyday life—letting them save for something special, make choices in the store, or experience what it means to "wait for later." By modelling these habits and creating real-life opportunities, we can equip our kids with the tools they need to navigate the world confidently and responsibly.
This paper is full of practical ideas to make that happen—because let’s be honest, we could all use a little help figuring this out!
Ponder
In this section, I invite you to think about a question I may pose or a thought I may share.
The greatest gift you can give another is the purity of your attention.
Oenophilia
“Oenophilia simply refers to enjoying wine, often by laymen.”
Fun fact: My sister and I have the same birthday (3 years apart). We aren’t always together over the December holidays but this year, we could celebrate our birthdays in style. We had lunch with some friends at the Newstead winery in The Crags (just outside Plett). If you ever find yourself in the area, do yourself a favour and visit this restaurant and tasting room. Not only is the venue spectacular but the food and wine are delicious!
On this scorching hot day, we enjoyed the award-winning Newstead Cap Classique Blanc de Blanc and Newstead Cap Classique Rose.
Hoping you have a prosperous and joyful year.
Stay curious,
Elke Zeki