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Why oil price rally isn’t a surprise, but iron ore’s price should stay low

09 June 2015 | General

We were encouraged to see the price of crude oil stabilize somewhat during the first quarter of 2015 after declining approximately 60% from June 2014 to January 2015 to under $50 per barrel. Looking over the longer term, as we do at Templeton Global Equity Group, we don’t see how the price of oil is sustainable even at the $60-per-barrel level it has reached recently. I can offer several reasons why I believe that is the case, but they boil down to the classic battle of supply versus demand.

Volatile global markets

09 June 2015 | General

After stabilising in May, the global bond sell-off resumed last week. Again, European bond yields, which had fallen the most over the preceding year, were hardest hit, but US and UK yields also jumped. The German 10-year bond yield touched a yield of 0.99% from 0.52% at the start of the week, its highest level since November 2014. German yields bottomed to an unthinkable low level of 0.07% in late April. Even after the sell-off, developed market bond yields offer no value, unless deflation is expected. Part of the reason for the renewed sell-off is European Central Bank (ECB) President Mario Draghi’s comment that markets must get used to periods of higher volatility. In other words, the ECB will not intervene over and above the existing €60 billion a month quantitative easing programme. The lower the yields, the higher the volatility (a 30 basis point move on a starting yield of 0.5% is massive compared to a 30 basis point move on a 5% yield).

WEF Africa – What did it all mean?

09 June 2015 | General

So, in a whirlwind of open forums, workshops, meetings, networking and a cultural soirée, the World Economic Forum (WEF) for Africa 2015 is over for another year. You may well ask what it achieved.

Morningstar announces findings from Fourth Global Fund Investor Experience Report; South Africa scores C grade

09 June 2015 | General

Morningstar Research (Pty) Limited, a subsidiary of Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today released its biannual Global Fund Investor Experience report, which assesses the experiences of mutual fund investors in 25 countries across North America, Europe, Asia, and Africa. South Africa scored a grade of C in the report. Morningstar researchers identified Korea and the United States as the most investor-friendly markets and China the least investor-friendly market.

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The strongest deterrent against FSP compliance missteps is or should be:

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