Good afternoon I'm interested in investing in these share, kindly advice further. Kindly contact me on 0794747933 Regards Smangele @Dineo_T wrote: Standard Online Share Trading (OST) is excited to announce that we now offer the trade of Sasol BEE Ordinary Shares (SOLBE1) on our platform. The SOLBE1 share scheme is a proudly BEE initiative, targeted at previously disadvantaged groups or designated people to encourage financial inclusion. Holders of SOLBE1 shares can now move their investment to the OST platform or purchase them directly on OST. What does this mean for you? Convenience of having your SOLBE1 shares in the same place as the rest of your portfolio. Easily monitor your share performance within your normal trading portfolio. Before you can trade or transfer your shares You will need to open an OST account if you don’t have one already (you can register for an account here). Once your OST account is open, complete an affidavit and email it to us ([email protected]), noting that you would like to open a BEE account. Verification and account opening will take up to 5 business days. How to move your SOLBE1 shares to the OST platform: Send an email to [email protected], copy your current broker, and inform us of your intention to transfer. You must include the transferring broker name, contact person and existing account number, details of the shareholding including the quantity and cost price and lastly the account number of your new BEE account on OST. How to purchase SOLBE1 shares on the OST platform: Transfer funds into your BEE account. Send the trade instruction [email protected] Emails will be actioned within 2 business days. For urgent execution, you can call us on 0860 121 161 once the necessary details have been sent. How to sell SOLBE1 shares on the OST platform: Log in to the OST website or mobile phone app and follow the normal online process of placing a sell order. Alternatively call us on 0860 121 161 for assistance. To learn more about Sasol’s BEE Ordinary Shares, please click here. While we are very proud to bring this to you, we’re still working on ironing out the verification process. Please do give feedback on how this process worked for you, so that we can work with our stakeholders to improve the process. For any enquiries, please call us on 0861 121 161 or send an email to [email protected] Disclaimer: SBG Securities (Pty) Ltd (Reg. No. 1972/008305/07). SBG Securities is a wholly owned subsidiary of the Standard Bank Group Limited, an authorised user of the JSE Limited and an authorised Financial Services Provider (FSP No. 26691) For more information on SBG Securities please go to http://www.securities.co.za
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At the moment, it is impossible for the state to control the cryptocurrency. This is far from ordinary money and cryptocurrency does not obey the laws of ordinary money. Also, the states just do not yet know what it is and how to describe it correctly. For example, if there are bitcoins on the company's account, what assets should they be attributed to? It is not clear at the moment. It was really cool to watch the development of bitcoin, but at the moment it has stabilized. But I do not like to use it, as well as other cryptocurrencies from the list of 20 most popular. They can change their course at any time. Usually I use something not very popular. But now it is very difficult to find a decent exchanger that would work with many currencies, as well as at a decent rate. Recently, on the advice of a friend of mine, I have been using https://coinchefs.com/eth/ngn/1/. I am sure that if you try this service, you will definitely like it.
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In kentucky I’m sure you know how you make your money working for a boss who really doesn’t care about you , I was pissed doing that job, I had to quit I told my son I quit and he said he knows telling how drunk I was coming back home that night He told me to give this bitcoin thing he has been telling me about that his friends dad did it and made enough money from it , boy want money .Well I had no choice than to give it a try after meeting my son rich friend dad lol I made a whopping sum of $36k after few weeks working with this great experts [email protected] This is real I can’t believe it , I’ve learnt a lot from this team about bitcoin strategies,trading ,mining , investing and So on , send them an email and have a great experience,trust me this has been the greatest thing to ever happen to me in my life.
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While doing any business or trade management of your portfolio is an important and necessary thing. You should have proper ideas about placing orders and sell orders. This management, enhance your business in selling point of view. I have best paper writing service reddit which provides best services on different forums.
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This is a series of webinars that looks at various issues around investing in Exchange Traded Funds and similar investment products.
1. Know your ETF - The ASHGEQ ETF
2. Understanding the SA Beta benchmark selection
3. Local and offshore bond ETFs
4. Looking at offshore healthcare ETFs
5. How to build a diversified portfolio with ETFs
6. Finding a JSE listed tech ETF
7. The difference between buying ETFs locally or offshore
8. Portfolio positioning through the economic cycle
9. ETFs for Retirement
10. Funds ballot process for mandate changes
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A series of webinars hosted by Simon brown to help you find your way around the Standard Online Share Trading and Auto Share Invest Platforms
1. Finding a share on the Standard Online Share Trading Platform
Similar articles: How to make the best of the search filter on Standard Online Share Trading
2. The Standard Online Share Trading quote page
3. Placing a trade on the Standard Online Share Trading platform
4. How to find fundamental data on OST
5. How to create Watchlists on OST and ViewPoint
6. Q&A Session on the OST Platform
7. Setting a stop loss or price alert
8. The lowdown on dividends, results, corporate actions and more
9. Finding research on OST
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In this webinar, you will learn how to f ind warrants on the Standard Online Share trading platform and adding them to your watchlists.
We also look at
Some greeks (theta, delta & gearing)
Warrants only account
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I subscribed to Level 5 but keep on getting "profile discrepancies" error messages if i want to log in to Viewpoint. Cannot get any response from Standard Bank call centre or any reply on my mails. who will be able to assist me. I subscribed, paid but for the last month cannot log into or access Viewpoint at all.
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Yes, I totally agree with this. It’s better to be cautious, you never know when you may encounter a scammer that could make you lose all your money. That’s something that I wouldn’t want for anybody. Losing your money can be fatal, especially when you know you don’t have any savings. There are a lot of people who believe everything a person can say, especially if that person have the power of persuasion. That’s why it’s better to use the Best Forex Trading Platforms and stay safe in this dangerous world, full of scammers and people who just want to use you. To all the beginners, don’t trust just anyone. Pick carefully your sources.
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Navigating the OST site
1. How do I update my personal details on OST?
You need to log onto your account on www.securities.co.za and request the change online, if you wish to do any updates on your account.
When you have logged on, you have to click on MY ACCOUNT on the menu bar. It will bring up a drop down menu. At the bottom of the menu there is an option DETAILS/PREFERENCE; please also click on that option to bring you to your application details. You will then have to change the details you wish to change then scroll down to the bottom to SUBMIT CHANGE.
The change would have been completed and you will receive an email to confirm the change request, and if required detail required supporting documents. Once received on our side, it will be updated accordingly.
2. How do I withdraw funds from my OST account?
Logon to www.securities.co.za
Click on my account
Click transfer cash
Request settled funds withdrawal
3. How do I close an account with shares in it?
In order to close your share trading account, you will first need to exit all the positions that you have by selling the shares in your portfolio or transferring them to another account or broker. Once this is done, you can close your account.
How to sell shares:
Logon to www.securities.co.za > my account > portfolio > click on share code for each share > trade and complete trade screen on right-hand side of the screen.
Once shares are sold and the trades have settled (T+3), please send the account closure request [email protected] once all the funds has been withdrawn.
How to transfer shares between your OST trading accounts:
You can transfer shares between your trading accounts sending us an email at [email protected] You'll need to include the below details in your instruction to us:
Account number transfer ring from:
Account number transfer ring to:
Quantity of shares :
Price shares should be transfer red at (if changing ownership):
Account where fees/taxes are to be charged:
Please note that a transfer fee of R39.90 is applicable per counter that is being transfer red.
In the case of a change in ownership, a Securities Transfer Tax of 0.25% of the value being transfer red would apply.
How to transfer your tax-free investment account:
If you'd like to transfer your tax-free account, you can follow this link which gives you a detailed breakdown on "How to transfer your tax-free account"
4. How do I transfer funds to my trading account?
For Standard Bank Account holders
Please see the below details on how to load a beneficiary: Standard Bank Internet Banking
Click on Payments and Transfers • Click on Beneficiaries • Click add new beneficiaries • Enter Own reference (personal reference) • Change Beneficiary Type from Private to Company • Type SBG then click search • Select a company SBG Sec Trust 6/7 Digit Ref (depending on the digits in your trading account) • Enter a beneficiary reference ( Trading Account Number) • Enter the One time password sent to your cell phone/email address
For Third Party Bank account holders
Please load SBG Securities client trust account as a beneficiary on your Internet banking facility to fund your account. The details are available once logged into the site, by navigating to My Account > Cash > Transfer Cash > Deposit Cash
5. How do I transfer shares between my OST accounts and/or to an external broker?
You will need to email [email protected] Please include the below details in your instruction to us:
Account number transferring from:
Account number transferring to:
Quantity of shares:
Price shares should be transferred at (if changing ownership):
Account where fees/taxes are to be charged:
Please note that a transfer fee is applicable per counter that is being transferred.
In the case of a change in ownership, a Securities Transfer Tax of 0.25% of the value being transferred would apply. Please see here for our current fees
You'll be required to acknowledge the fees before we proceed. You'll also need to indicate which share trading account will be liable for the fees.
External transfer to another broker.
We require a written instruction to transfer your portfolio to your broker. It is also important that you provide the counter party with a copy of your instruction to avoid any delays in processing your request. The instruction should contain the following details:
Name of Broker
Account number held with that Broker
Name of the contact person
You will need to confirm whether the shares must be transferred at cost price or the market price. Please ensure that you have sufficient funds in your trading account to facilitate the transfer as your trading account will be debited with the cost.
Please see here for our current fees, and note that the fees work differently depending on whether you are doing a complete or partial transfer. Also remember to request that your trading account be closed should you wish to discontinue with our service otherwise your trading account may still be debited with our monthly admin fees. You can download the Broker transfer form by clicking on the PDF attachment below titled "Broker to broker Transfer form 2020".
6. Withdrawal of funds following a sale of shares?
Proceeds from a sale of shares will only be available for withdrawal 3 working days after the date of sale (T + 3). Once the funds have settled, a withdrawal can be requested by logging onto your Online Share Trading profile and going to My Account > Cash > Transfer Cash > Request Settled Funds Withdrawal.
Note that you are able to request a withdrawal prior to the settlement of these funds (ie.early settlement) by contacting our helpdesk at [email protected] or by calling 0860 121 161 post the current national lockdown. Please be advised that this early settlement would attract a fee per the fee schedule
7. My deposit is not reflecting on ViewPoint?
Please note that deposits of funds normally reflect overnight on the ViewPoint platform. Should you need to have these reflect sooner, please contact us on [email protected] for assistance.
8. How can I participate in Initial Public Offerings (IPO) or Private Placements?
From time to time Online Share Trading clients are invited to participate in IPOs and Private Placements by clicking on the appropriate corporate action link under the Special Announcements section of the home page. If you have elected to be notified of IPOs and Private Placements we will inform you when such events are available via email. This email will also provide steps to follow for participation.
9. How do I participate in corporate action elective events (eg. Elective dividend events) on the Online Share Trading platform?
You may submit your election by logging onto your profile then going to My Account > Electives and Proxy Events. This will lead you to our corporate actions page where you’ll be able to participate in elective dividend events and/or submit your vote.
Q: When I log in I get the message "you have a corporate event" but when I click action now it just opens the home page
A: You need to ensure that you have pop-ups enabled on your computer to be able to access this page. We have attached a guide (document titled 'Corporate Actions online quick user guide' below) on how to make your election for your perusal.
10. How do I access research/analyst reports?
You can access research reports by logging onto your profile and going to Tools> Research > Analyst Report; Economic; or Tech Analysis. Research reports are also made available on the Market Overview page. To access this page go to Market Info > Market Overview.
11. What instruments can I trade on the Online Share Trading platform?
A wide range of instruments are available on the platform. Currently we offer trade in Shares, Warrants, CFDs, Futures (SSFs, Index, Commodity, Currency), Option Strategies, Exchange Traded Funds, Exchange Traded Notes and Preference Shares
12. How do I see which shares indices are comprised of?
To view the different indices on the JSE and which shares are in them, please log on to your profile and go to Market Info > List of Indices. This page will display current point movements and stats. To see the shares within the index, click on the link below the “Index Shares” column for the respective index.
13. How do I download webinars?
Kindly note past webinars are placed on the website , once logged onto your account from the the Home Page > Special Announcements > Webinar downloads
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"Embarrassed? Steve won't be embarrassed. Hell, he doesn't mind people seeing him naked. I was thinking of you. You really want to get naked in front of my husband?" "Not naked. Just take my top off. You know how horny I get being outside with my **bleep** exposed. C'mon, didn't you say you wanted to have some fun after we finished our lesson plans?" "Well, yeah. But not in front of Steve. He doesn't know." https://www.indiantube.porn/categories/nepali/ Fun? They're planning on having fun together? With their tops off? What don't I know? What've I been missing here? My **bleep** twitches again. "Look! He's getting hard. Think he's awake and can hear us?" Erin asks. "Nah. I think if he heard us talking and were awake, he would've gotten up and taken your top off for you. You've seen how he stares at your boobs. He's probably dreaming about the **bleep** we had this morning. That Cialis works like a charm." "Hmmm...morning **bleep**. I can't remember the last time I've had morning **bleep**." Erin is still single, and while I don't follow her love life, Alex tells me enough so that I know how much Erin loves to have **bleep**, and especially sucking **bleep**. "**bleep**. Look at how hard he is," Alex says. "I wonder what he'd do if he woke up to me riding his **bleep**..." "You riding his **bleep**? I wonder what he'd do if he woke up to me sucking his **bleep**," Erin interrupts.
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As investors, we’re all intent on growing our wealth and net worth through our investing. Our aim, when investing, is ultimately to afford a better quality of life for ourselves. What this life looks like will vary from person to person, however the underlying goal is almost always consistent: we want financial freedom.
It’s not enough to simply want financial success. We need to take a structured and goal-oriented approach to investing. One of the ways to do this is to use the SMART goal-setting framework to guide your investment strategy, which we’ll expand on below.
Goals act as a road map for your investment success
Once you put your investment plan together, having an actionable step-by-step process will help you stick to your plan and make it a reality.
Your goals will also make it easier for you to chunk down your plans and make smarter decisions because goals, when done right, force you to really think about where you’re going and how best to get there. They’ll help you see any holes in your strategy and make it easier to change tack when an investment decision doesn’t go as planned.
Most importantly, goals will help you keep track of your progress. While this framework is geared towards investing, these are principles you can apply to all aspects of your life – from health to your career.
Mapping out your goals using SMART framework
SMART goals stand for
S = Specific: Is your goal clear? A clear goal takes a general wish such as “I’d like to start investing this year” and turns it into a clear, specific and workable plan like “I’d like to start investing into a tax-free investment account through ETFs so I can supplement my retirement”. Use Who/What/Why/When/Where/How questions to guide you. The rest of the SMART acronym will help you add some structure to the now very clear statement
M = Measurable: In order for you goal to be measurable, you need to add some metrics to the mix to help you see your progress. What time lines are you dealing with? How much do you want to contribute? How frequently can you make contributions? How will you know you’ve reached your goal?
A = Attainable: Once you’ve got your metrics in place, you need to assess whether you have the means to start moving with putting your goal into action. Whether a goal is attainable or not depends on your financial circumstance. If you’d like to invest the full R33,000 in your TFIA per tax year, you’ll need to be able to contribute R2750 a month. That means you need to look at your income and see if this is a possibility. You also want to set your goals up in such a way that you’re not setting yourself up for failure. This means not setting a goal to save R1,000,000 in a year when you have no reasonable plan in place to acquire that money. Unfortunately, betting on the possibility of winning the lottery isn’t a plan.
R = Relatable/Realistic: We’ll break these down into two components. As it relates to relatability, your investment goal should be consistent with your lifestyle needs and your personal values. If your aim in life is to retire by 35 and travel the world, your goals and investment strategy will be very different from someone who wants to be married with 2 children (in private school), a gorgeous house in an affluent suburb and a c-suite job by the time they’re 40. You also need to be aware of the opportunity cost of investing, for instance, will choosing to invest aggressively mean you can’t further your studies or will it have an impact of the kind of house you can afford? Or will you have a time opportunity cost because you must pick up a side hustle to reach your investment targets?
When it relates to being realistic, your goal needs to make sense given your resources and competing responsibilities. If your salary is R30,000 a month and you have a house, car, education and general expenses to take care of, you might not be able to invest R15,000 a month simply because your income doesn’t give way for that kind of aggressive investing. It’s may be an unrealistic target and might end up having a counterproductive impact on your investment planning.
T = Time-bound: Lastly, you need to have a sense of time limits around your investment time horizon. This ties in with having measurable goals. Are you investing for retirement? Children’s education? When will you need the money you’re putting aside? Are you going to break down your progress into 12-month progress intervals? How often will your review your strategy?
Be disciplined but leave room for life to happen
As with all things, have a plan but don’t forget to factor in life’s up and downs. Certain events might force you to change your investment goals or affect whatever progress you’ve made. There’s not much you can do to stop these but the most important thing is to get up and keep going. It’s important to start, and then keep going, no matter what obstacles find their way onto you path.
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In this presentation Simon Brown, founder of Just One Lap, covers the basics of tax-free investing and Exchange Traded Funds (ETFs). He also looks at the most effective way to utilise your tax-free investments - not only for returns, but to get the maximum tax saving benefit as well.
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In this month's podcast, we discuss the global landscape now that Boris Johnson is in power, and the impact this may have on South African investors.
We also dig into Shoprite's results and Simon gives us a rundown of what went wrong.
We end off with a tackle of an alarmist tweet around the health of Woolworths and Simon shares his opinion on whether investors should be worried or not.
Or watch now
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In times of economic uncertainty, taking investments offshore as a means of diversifying makes sense for a discerning investor.
However, going offshore is something many tend to believe is limited to the ultra-rich and affluent. There’s also a misconception that offshore investing is all about buying property in London or a summer villa in the south of France. But this isn’t the case. Technology has made offshore investment a lot more accessible to investors who don’t have large amounts of capital to invest. Despite this, many myths about investing, as well as psychological barriers, still abound.
In this Power Hour session, Sandesh Ganasee from Standard Bank Webtrader talks about the pros and cons of going offshore, the biases at play when investors focus on local investments and some of the things investors must take into consideration when they decide to go offshore.
He also covers the benefits of using ETFs as a vehicle to invest offshore when you do not have the time to delve into individual offshore stocks. He also looks at local ETFs that investors can use to gain offshore exposure and explore the importance of rand-hedging, especially in times of volatile currency moves.
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Standard Online Share Trading is pleased to announce that we’ve partnered with Biznews to offer you discounted access to their Premium news platform and Standard Online Share Trading at a discount, with the first month on both platforms completely free!
As an existing OST client, once you sign up with BizNews you will have have access to all the Biznews Premium perks as well as receive a discount on your monthly OST admin fee. The OST montly fee will be R70 and you get access to Biznews for a discounted £4.50 a month.
What OST has to offer:
A dynamic trading and portfolio management tool with ViewPoint platform (free with delayed prices)
A variety of investment and trading instruments, from equities to CFDs, Futures and Exchange Traded Products
A tax-free investment account at no extra cost to you
Weekly technical analysis insights through webinars
Monthly webinars with industry experts looking at markets and investment themes
Access to world-class insight from our top-rated equity research team
Face-to-face seminars and workshops
Risk management tools such as Stop losses, automatic close out and price alerts
Access to Market data
The BizNews offering:
Full access to the Wall Street Journal
Members-only WhatsApp group
Regular investment webinars and recordings
Remember, you can cancel this anytime! For more info, please contact [email protected] If you want to learn more about Biznews Premium, click here. To take advantage of this offering, click here.
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President Trump has tripled down on his trade war with China as he imposes more tariffs on Chinese goods entering the US and also bans US firms from working with Huawei. Stock markets are spooked and under pressure as this has serious implications for global growth.
In this presentation Simon Brown, founder of Just One Lap, will dig into the implications of trade wars, the real cost to consumers, the likelihood of a full-blown trade war and how the aggrieved parties may respond.
Most importantly, he’ll look at the impact to our investment portfolios, how we can protect ourselves from the fallout as well as how we may be able to actually profit from trade wars.
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The last of our ViewPoint Basic series where we show day traders how they can trade equities and derivitates on the ViewPoint Platform
In this webinar, Simon Brown will take you through his trading system for equities, CFDs and Futures as well as trading indices.
If you missed the first two webinars in the series, you can catch them here:
Introduction to ViewPoint
Technical Analysis on ViewPoint
Managing your Investment Portfolio with ViewPoint
Using charting on Iress Viewpoint
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Learn to navigate ViewPoint's charting tool for technical analysis with founder of Trader's Corner, Garth Mackenzie.
Garth's presentation will take you through the charting features available on the ViewPoint platform and demonstrate how these can enhance your trading experience.
In case you missed it: Introduction to ViewPoint
Using charting on Iress Viewpoint
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We're in the second half of the year and the JSE's performace has been something of a miracle. Up 12%, buoyed by resources, trading volumes haven't followed this pattern. We chat about this divergence, the performance of the platinum sector and we weigh in on the listed property space.
We also unpack Christine Lagarde's move from the IMF to head up the ECB.
...or watch on YouTube
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Interest rates, while widely circulated, are scarcely understood. What determines interest rates? Why are they important? How do you measure how ‘good’ an interest rate is? In this article, we’ll try to breakdown all this and more – and hopefully, you’ll have a different view of interest rates, their meaning and their function.
Interest rates are probably the most important factor that affects the wealth of individuals and nations alike. And due to how much interest rates move around, it’s understandable why people would take such a keen interest in this number. It has an impact on every person, every business and every single government.
To paint a picture of just how much interest rates move, we’ll look at South Africa’s interest rates. In April 1999, South Africa’s interest rate (repo rate) was at 15.75%. In 2009, it was almost half of that, at 8%. Today, April 2019, interest rates are at 6.75.
South African Interest Rates: April 1999 to April 2019
As you can see, the rate has made some big jumps over the years. But what is behind these moves, and, more importantly, how does it affect our government, the broader economy, and your wallet.
A theoretical look at interest rates
Firstly, it might be helpful to step back and define interest rates. Financialdictionary.net defines interest rate as:
An interest rate is a percentage amount of the whole sum of money, which is either being saved or borrowed. In the case of savings, the saver gets paid either an annual or monthly interest rate amount on the money in their accounts. For borrowers they have to pay either a monthly or annual interest rate on their debt repayment.
Simply put, an interest rate is the cost of money. The rate that guides most markets is known as the repo rate and it is largely determined by the government. The underlying factors – how much people borrow and what lenders are willing to give – determines the direction of the rate. When the number of people looking to borrow more money than what lenders are willing to give out at the current rate, the rate will go up. Accordingly, when fewer people wish to borrow funds, the rate will go down.
While this is a fairly simple concept, the lenders that provide funds want to be paid for their funds being used. That payment must cover inflation and risk. The former is a very close determinant of interest rates. Usually interest rates will be a couple of percentage points* above the prevailing inflation rate.
The latter, risk, covers against the likelihood that borrowers may default on their promise to pay back the loan. When borrowers are considered ‘low risk’ because it’s almost certain they will repay the loan, their interest rate will tend to be lower that borrowers who are more likely to default.
Interest in the real world
In our everyday lives, economies are likely to be growing and thriving when interest rates are low and access to credit is somewhat easy. A low interest rate means money is cheap. Cheap money means that businesses and individuals can take on credit obligations with a lower cost of debt. This encourages consumers and businesses to spend more.
When interest rates are higher, then it’s very likely that times are tough – institutions such as banks will be unlikely to lend money freely, consumers and businesses will be spending a lot less. This can be seen if we contrast economies with high interest rates such as Argentina (67.87%), Venezuela (32.28%) and Turkey (24%) with lower or negative interest rate economies such as the US (2.25%), The European Union (0%) and Japan (-0.1%).
The role of the South African Reserve Bank
Trying to figure out what makes an interest rate “right” is a rather difficult task. That’s where the South African Reserve Bank (SARB) comes in. The SARB is tasked with maintaining price stability by driving the country’s monetary policy through the Monetary Policy Committee. In essence, the SARB’s responsibility can be summarised as safeguarding the value of the South African rand against foreign currencies such as the US dollar by keeping an eye on inflation.
Inflation – the rise in prices and decrease in the purchasing power of money – is what happens when economies are growing. In this scenario, demand increases at a faster rate than supply. This dynamic causes prices to rise. The reverse scenario will cause an opposing effect. The SARB must keep inflation within a certain range. This is known as inflation targeting.
The SARB steps in by adjusting interest rates, raising them so that demand slows down a little and the economy cools down. However, the government must guard against too much cooling. When the government needs to stimulate the economy, then rates will drop to encourage spending.
Interest rates and the stock market
Usually when interest rates go up, media outlets will focus on the impact on household spending. Consumers will suffer because the cost of their home and car loans go up. This means they have less money to spend in other areas. It also means plans to purchase large ticket items are put off for a few months or years or holidays are scaled down or stopped entirely.
Businesses are affected in a similar way. Higher interest rates mean that businesses may delay or pull the plug on expansion projects because the cost of money, credit, is too high or they cannot secure debt funding. In a similar vein, entrepreneurs looking to launch businesses may find themselves unable to do so because credit taps are dry.
The result is that the economy slows down considerably, and with it, company profits. That’s why a glow growing economy will almost always be accompanies by a sluggish or bear market. You’ll also often hear company CEOs point to the slowdown in spending as a large contributing factor to sales growth, for instance.
And, when rates are lowered, you’ll find that all these trends go in the opposite direction.
Because investors in the stock market are looking to the future, they will always try to anticipate the impact that interest rates will have on a company’s earnings and price it into the company share price. In this way, they ‘discount the future’.
When the market anticipates a rise in rates, it tends to reflect in the lower stock prices. This is why investors also look out for inflation – they know that inflation means their portfolios will be impacted. (This is also why a diversified portfolio with offshore exposure is important.)
All in all, it’s important that you as an investor keep track of interest rates and understand how they work. You can find information on Interest rates from news sites such as Bloomberg ( https://www.bloomberg.com/quote/SARPRT:IND ) and Investing.com ( https://za.investing.com/indices/major-indices ).
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Welcome to 2019 – we made it this far. We all know that 2018 was a terrible year for investors on the local bourse. The Top40 closed 11.5% down for the year, and some of our large cap stocks ‘saw flames’, as the kids on the internet would say. Of course, trading volumes suffered.
International investors were jittery following the emerging market scare that had people speculating on whether there would be another EM crisis, akin to the one in 2013. It’s not surprising, given that countries like Turkey and Argentina gave investors a compelling reason to check out of the emerging markets. For South Africa, those fears were lumped with an unfavourable market (as pointed out above). Below is a look at total return performance by sector for 2018:
Source: SBG Securities Analysis, Bloomberg
Add the lethargy of small and mid-cap stocks and you understand why people wouldn’t be blamed for taking their money out of the market and parking it in cash then choosing to ‘wait-and-see’. However, this may not be the best move – particularly if you’re playing the long game. It’s important to always bear in mind that when it comes to investing, time is your biggest ally, closely followed by compounding. Both work together to help you create wealth. Compounding cannot work if you don’t give it the time to work. And, by 'time', we mean at least 10 years.
So how does one navigate a bear market without putting all your funds in cash and waiting the slug out? We have a few pointers you can use as a basis for your strategic planning:
Do not put your head in the sand. The worst thing you can do is turn a blind eye to what’s going on.
Reassess your strategy: it’s the new year and you have a somewhat clean slate to work from. There are a few questions you can use to help you make an informed decision:
Which companies did badly and why?
What economic and political factors affected companies with global exposure?
How do the company fundamentals look?
What are the prospects of the company and how will technology affect it company in the next 5 to 10 years? It’s important to use this time frame as a yardstick because that’s how far ahead you need to be thinking.
Align your strategy with your long-term financial goals. It’s tempting to focus on putting out the small (in the greater schemes of market performance in the last 100 years) fires – maintaining perspective and focus will help you reach your goals.
Refresh your knowledge of markets. This is particularly important if you still don’t have a firm grasp of what drives valuations. You don’t have to be a professional portfolio manager, but analysing a company includes looking at external and internal events to get a clearer picture of what’s going on. There are fundamental metrics you can look at – even if you do not have an accounting background. This webinar will help you understand these metrics and why they matter: Financial ratios for Fundamental Analysis: which numbers to look for and why.
Don’t panic. This is easier said than done, but approach your strategy with as much information as possible to make an informed decision.
You can also take a read at this very insightful piece from Bloomberg. While it’s geared towards US investors, the underlying principles are the same: What to expect when you’re expecting a bear market.
This material is considered educational communication and does not constitute advice. Please read our disclaimers here.
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