Personal Finance Newsletter - Volume 2014, Issue 398, 2014
Volume 2014, Issue 398, 2014
Source: Personal Finance Newsletter 2014, pp 3 –4 (2014)More Less
Author Warren IngramSource: Personal Finance Newsletter 2014, pp 4 –5 (2014)More Less
Every year participants in the investment industry (including the financial media) engage in a rather entertaining but ultimately useless game of predicting where the markets are going in the next 12 months. People choose their favourite shares and unit trusts, tell us where the rand is going, and what the markets are going to do.
Source: Personal Finance Newsletter 2014, pp 5 –6 (2014)More Less
With charges in the retirement industry under the microscope, and low-cost products entering the market, the landscape is set to change substantially. Although some industry commentators have labelled National Treasury's discussion paper on charges as "weak" - for example, comparing South Africa's retirement fund industry to that in countries with different structures and not normalising its data for the discrepancy - others have lauded it as "brilliant".
Source: Personal Finance Newsletter 2014, pp 7 –8 (2014)More Less
When analysing the differences between (exchange-traded funds (ETFs) and exchange-traded notes (ETNs), one of the questions that crops up is how these products are treated when it comes to tax. In cases where they offer exposure to the same underlying index, canny investors would like to know if there is a tax benefit in choosing one over the other. This is a fair question, and it should be a fairly simple one to answer. Only, it isn't. There are some grey areas here that make things a little tricky.
Source: Personal Finance Newsletter 2014, pp 8 –9 (2014)More Less
If the rand continues to weaken, the South African Reserve Bank (SARB) may continue to flex its muscle by increasing interest rates for the first half of the year. In its first monetary policy meeting of 2014, the bank increased the repo rate by 50 basis points to 5.5%.
Author Felicity DuncanSource: Personal Finance Newsletter 2014, pp 9 –10 (2014)More Less
Reading the coverage of the Reserve Bank's decision to raise rates, I've been struck by how (for want of a better word) parochial a lot of the local coverage has been. Headlines like "Interest rate hike to have 'moderate effect' on economy," "Rate hike a blow to housing market?" and "Rand 'recovers' after rate hike surprise," make it seem like the Reserve Bank's decision to hike rates was a primarily domestic decision, motivated purely by South African concerns and of interest only in so far as it affects the local economy.
Author Judy GilmourSource: Personal Finance Newsletter 2014, pp 11 –12 (2014)More Less
As reporting season for the New Year kicks off, one of the first to come out with results was electrical product supplier Ellies, raising the issue of small cap vulnerability to tender / contract-driven work. Its interim results to October 2013 did not have the benefit of the Eskom Residential Mass Rollout project which boosted the comparative period.
Source: Personal Finance Newsletter 2014, pp 12 –13 (2014)More Less
Since the financial crisis of 2007-2008, the world's stock markets have moved in extreme and often surprising ways. However, despite sharp downturns, the gains have been more pronounced than most could have foreseen in the dark days at the end of 2008 and the start of 2009.
Author Magnus HeystekSource: Personal Finance Newsletter 2014, pp 13 –14 (2014)More Less
The sharp and continued drop in the rand against all major currencies over the last year will make it even less likely that local fund managers and advisors will head across the Atlantic to attend the annual general meeting of Warren Buffett's Berkshire Hathaway group sometime in May this year.
Source: Personal Finance Newsletter 2014, pp 14 –15 (2014)More Less
The total fuel spend of an individual driving 2 500 kilometres every month has more than doubled during the past five years. According to the WesBank Mobility Basket, a comparative measure of the monthly cost of financing, using, and maintaining a vehicle over time, the monthly fuel spend of consumers has increased far more significantly than the other components of the basket since 2009.
Author Sasha PlantingSource: Personal Finance Newsletter 2014, pp 15 –16 (2014)More Less
One of the comforting things about working at Moneyweb at the moment is that it is an organisation with a very clear sense of purpose. It's growing - and it's hiring, rather than retrenching, skilled staff. That makes it an energising place to be. Unfortunately, retrenchment is facing my friends and colleagues in the media industry and in other industries. Just think of Times Media, Pick n Pay, Absa, JD Group, and others.