For the background to this series of posts: here, here and here. And 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.
The main news of the week:
- We have a new SARB governor appointment (the Rand immediately strengthened).
- Platinum and Gold swan-dived.
The Once-Off Investors
The strengthening of the Rand (only really in the last few days) meant a bit of a fall-back for the dollar-denominated stuff (the MSCI World Equities ETF, the USDs, etc):
The Monthly Investors
You’re starting to see a bit of a separation between the asset classes. And really, what I mean is: gold.
The Indicators
The basic summary:
The exchange rate – is improving. A bit. On the news that Lesetja Kganyago will be replacing Gill Marcus as SARB governor in early November. The general opinion is that he’ll be more hawkish about controlling inflation – which is making the bond markets happy.
The stock market, less so:
Although the stock market movement has a lot to do with this:
Platinum. Good gracious.
The story is that speculators are driving the price lower by taking up short positions “as the largest producers take time to return to normal output levels after the labour strike”. I’m not joking – read here.
This is the mining equivalent of shorting food stocks in anticipation of a famine.
I say this unabashedly – if you’re looking for some short-term upside, go and purchase a platinum ETF.
In other commodity news, oil:
Until next week!
Rolling Alpha posts opinions on finance, economics, and the corporate life in general. Follow me on Twitter @RollingAlpha, and on Facebook at www.facebook.com/rollingalpha.
