Personal Finance Newsletter - Volume 2009, Issue 347, 2009
Volume 2009, Issue 347, 2009
Source: Personal Finance Newsletter 2009, pp 1 –2 (2009)More Less
Friedrich Nietzsch once said: "Most individuals are sane, whilst most crowds are not. Crowds regularly behave in a way that the constituents, as individuals, would never countenance." This description is certainly applicable to investment markets where we continuously see massive overreaction by investors to market news.
Author Anil ThakerseeSource: Personal Finance Newsletter 2009, pp 2 –3 (2009)More Less
South Africans who put their savings into offshore equity markets when exchange controls were eased in the late 1990s have been badly disappointed over the past decade: the MSCI World Index has returned 2.8% per year in rand terms and the average SA unit trust in the Foreign Equity sector returned only 3.3% per year in the ten years to 30 September 2009, leaving investors with little to show for their offshore portfolios.
Author Ann Van den BergSource: Personal Finance Newsletter 2009, pp 3 –4 (2009)More Less
Following the announcement by Minister of Finance Pravin Gordhan, during his medium term budget policy statement in Parliament, that exchange controls would be reformed to lower the cost of doing business in South Africa, the Reserve Bank has now released details of these changes.
Author David CarteSource: Personal Finance Newsletter 2009, pp 4 –5 (2009)More Less
Author Tess RodriguesSource: Personal Finance Newsletter 2009 (2009)More Less
The new amendment to the taxation laws, with regard to residential properties in a company, close corporation (CC) or trust, has been widely publicised. But just in case you're still in the dark: If you own your primary residence in the name of a company, CC, or trust, you have a window period until 31 December 2011 to transfer this property into your personal name, without incurring transfer duty and Capital Gains Tax.
Source: Personal Finance Newsletter 2009, pp 7 –8 (2009)More Less
Will there be a better opportunity to buy property than now? Has the South African property market seen the worst? Do house prices have much further to fall? These are questions that have been troubling individuals pondering whether they should delay a decision to get onto the property ladder.
Author Julius CobbettSource: Personal Finance Newsletter 2009, pp 8 –9 (2009)More Less
Financial services group Dynamic Wealth is going through a rough patch at the moment. About R230 million of its clients' money is tied up in Corporate Money Managers, which is under curatorship. Then there is the group's Specialist Income Portfolio, an investment vehicle of another R230 million-odd which has lost money in bridging finance transactions which went sour.
Author David WarnekeSource: Personal Finance Newsletter 2009, pp 9 –10 (2009)More Less
As announced in the recent interim budget speech, the foreign investment allowance for adults over the age of 18 years has been raised from R2 million to R4 million. Because of this, many South Africans are contemplating taking advantage of this concession to invest overseas. It is therefore timely to consider the tax implications of such investments.
Author Keith McLachlanSource: Personal Finance Newsletter 2009, pp 10 –12 (2009)More Less
The market is always in flux with opportunities temporarily appearing all sorts of little nooks and crannies. One of these nooks and crannies is the small-cap sector's recent under-performance to the All Share Index that has opened the sector up to some potentially lucrative deals ... if you have the capital and contacts.
Source: Personal Finance Newsletter 2009, pp 13 –14 (2009)More Less
South Africa's new Reserve Bank governor, Gill Marcus, ruffled feathers when she announced that the Monetary Policy Committee (MPC) decided to leave the repo rate unchanged last month. The repo rate guides commercial bank rates, and many property owners were hoping that interest rates would be chopped yet again.
Author Ricco FriedrichSource: Personal Finance Newsletter 2009, pp 14 –16 (2009)More Less
Myths are widely held beliefs that are mistaken as truths. For example, for long periods of time people believed (and acted) as if the world was flat. Below are similarly misguided assumptions that exist in the financial markets that I have come across during my investment career. I have found the reality that lies behind these to be invaluable in guiding my investment decisions.