For the background to this series of posts, I suggest here, here and here. The summary:
- Small investors have some investing options.
- You can invest occasionally in lump sums (the once-off investors) or monthly through debit orders (the monthly investors).
- As for things to invest in, I’m a general fan of low-cost equity-index-tracker ETFs (as is Warren Buffett). But there are other possibilities as well.
- This series of posts is there to see which would work out well.
- Then there are some indicators at the end. Just to get a feel for what things are good to know.
The Once-Off Investors
And in pictures:
The ETF, eh? It really does well with all the low fees. And there’s really not much in it between the Satrix ETF and the unit trust (which is telling, because I chose quite a high risk unit trust – entrepreneur funds – not the safest!).
The Monthly Investors
As time goes on, you’re starting to see a distinct separation emerging between the various investment strategies. Although what should be clear is that the main power of growth doesn’t come from your asset class: it comes from the saving habit. #ThePsychologyOfSavings
The Rand, for some obscure reason, is having a weak moment (“hitting a three month low” as they say):
Which does run a bit contrary to this:
Because that’s clearly indicating growing demand in the bond market. But perhaps those falling yields are being driven by more local demand. And I guess that would make sense – payday happened a week ago, all the pension fund contributions would have just been paid over to the fund managers, and pension funds do have some requirement to push money into government bonds.
At the same time, the JSE has remained a bit flat:
Oil is doing whatever oil inexplicably does in the face of ISIS (that is: remaining unfazed – and what does that say about the growing oil production in the countries outside of the Middle East?).
Gold and Platinum prices remained a bit boring. And especially boring relative to all the Impala Platinum earnings excitement (or despair) from last week: