The Preamble
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. Because why not.
Let me begin with a small disclaimer – Telkom and I have not had the best of mornings together. Their ADSL exchange has been blowing hot and cold on me – as indicated by the flickering of my skype icon, and the total failure to load of any webpage.
So if I sound irritated, apologies in advance.
A look at the week everyone had:
Once-Off Investors
In pictures:
Gold bugs? Does it burn?
In numbers:
Monthly Investors
In pictures:
In numbers:
The Indicators
The exchange rate…is weakening. Or, rather, the US dollar is generally strengthening, which is giving metals traders “headaches“:
The stock market is still correcting itself…
Although that’s really just in ZAR terms, because in real terms, not so much:
10 Year government bond yields are sort of staying where they were:
But commodities…
Gold and Platinum are finding new lows. Which is presumably due to that strong US dollar – after all, if traders are treating bullion as an alternative investment to dollars, and dollars are on the up, then obviously you get:
But at least for the gold and platinum mines, the falling prices were offset by the weakening exchange rate:
Oil prices in the world continue to plummet. Interestingly, there are rumours that this is a strategic ploy by the Saudis to render much of US oil economically inaccessible by shredding their profit margins (for an explanation of how that would work, I wrote about the fun of oil reserves in The Petrodollar Collapse). But here’s the graph:
Although based on the exchange rate, that will have no impact on us:
That’s all for now.
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.
Comments
MHB November 12, 2014 at 10:11
One off vs monthly investing: Why choose to show 3500 once off vs 1000 monthly?
ReplyWould it not be better to compare 3500 vs (3500/12) invested monthly?
Jayson November 19, 2014 at 11:31
Hi there
You’re right – I think it would be! But unfortunately, it’s a history thing. I only decided to do a monthly comparison about 2 months into the series – so instead, I went with:
1. A R3,500 once-off VS
2. A R3,500 initial investment plus R1,000 monthly
Obviously, that’s not quite apples with apples. But the idea is to show:
1. The accumulative impact of monthly saving patterns; and
2. How your return profile changes when you invest consistently.
It’s not the greatest methodology, agreed. But I’m going for general principle rather than academic rigour! 🙂
Reply