Investments

Drawdowns, drawbacks and disruption

Still hope for a New Dawn?

With GDP up 3.1% in the second quarter of 2019 (seasonally adjusted, annualised) and 0.9% for the year to June 2019, the markets have responded positively. The rand appreciated by some 10 cents on publication of the data and bonds yields declined by about 10 basis points.

The Guns of August

The first half of the year saw a rebound in global equity markets, led by the US, despite the fact that the global economy was clearly cooling. Investors were buoyed by the apparent progress in the US-China trade negotiations, and found comfort in the fact that central banks were acting to cushion the fallout. However, the events of August have shaken these beliefs.

Demystifying derivatives: taking risk off the table

Derivatives have been given a bad rap after certain funds, like the ill-fated Long Term Capital Management, used them to leverage their market exposure to such excessive levels that they blew up and put the entire global financial system at risk.