This weekend my attention was drawn (thank you to PSG Asset Management's Shaun le Roux) to an article on the FT website with the title above. There is no doubt that many tracker funds and ETFs have had very strong performance in recent years as we have seen a powerful momentum trend push the prices … Continue reading Index trackers break basic rules of portfolio management
Prudential Investment Managers' Johnny Lambridis penned an interesting article last month in the Active/Passive debate. Some of the points he made were: Passive investing is gaining ground in the South African market, mainly due to the (generally) lower fees involved compared to actively managed funds, but also based on some misperceptions stemming largely from the … Continue reading Prudential Investment Managers: Why active management beats passive in South Africa
Much has been made of how concentrated our local All Share Index (ALSI) is and how certain companies (like Naspers) have a significant impact on movements of the index. But the ALSI is not unique. The Dow Jones Industrial Average also called DJIA, or simply the Dow, is a stock market index, that shows how 30 large publicly owned companies based … Continue reading How do you like THEM apples?
GMO have released their monthly forecast of what they believe the probable asset class returns will be over the next 7-years. Comment: Asset class / index views are a broad generalisation and should not be interpreted as meaning that all/every component is the same. Within each of these asset classes one will find assets which … Continue reading GMO’s 7‐Year Asset Class Real Return Forecasts
Writing in the latest PSG Asset Management quarterly newsletter my friend and former colleague, Philipp Wörz has highlighted that it's not just foreign asset managers who think that developed market valuations are starting to feel quite stretched, but local managers are very aware of this too. "Global equities have been in a bull market ever … Continue reading PSG: Be selective when investing offshore and don’t discount South Africa
I have been a fan of GMO's James Montier (and his colleague Jeremy Grantham) for some years and rarely miss an opportunity to read what they have to say. Montier's latest paper, written with colleague Matt Kadnar, is entitled "The S&P 500: Just Say No". It's a long read so pour yourself a cup of coffee, click … Continue reading The S&P 500: Just say no
Here are the top 25 counters in the S&P 500 Index as at the end of July 2017. Together these companies make up more than a third of the index. Whilst they are a fairly diversified group of companies, they are certainly dominated by the Technology companies. Top 25 Holdings % Index Apple Inc … Continue reading The S&P 500 top 25
The Standard & Poor's 500 Index (S&P 500) is is a market capitalisation weighted index composed of 500 large-cap stocks (over about $10billion) and is seen as a leading indicator of U.S. equities. Here is an intro to the index. Disclaimer: The information provided is not intended to address the circumstances of any particular individual or entity and should … Continue reading The S&P 500: The most widely tracked index in the world