Daily Market Blog: Leaning like Lehman

28-AUG-15

"When those with the pot of money, those who control the pursestrings, decide to push the big red buzzer and give you an X and send you into "South African stocks have no talent" oblivion, you know what happens next."






To market to market to buy a fat pig. Everything changed. Or nothing changed, take your pick. Resource stocks were on fire globally, and being a sort of dominated by resources index, it had a marked impact. There were some massive moves from the diversified miners, those were driving the show. Anglo up 7.8 percent, BHP Billiton up 7, Sasol up five and one quarter of a percent.

I flagged something very interesting, a tweet and a link (which is better than a wing and a prayer) from Joe Weisenthal, aka @TheStalwart who said: "This is stunning. On Monday, Emerging Markets had outflows at the same pace as the week Lehman went down." And the link to the story: Money Pours Out of Emerging Markets at Rate Unseen Since Lehman. You need an explanation as to why you woke up on Monday and saw the Rand, along with all the other emerging currencies of the world tanking (I think we nearly reached 14 to the Dollar) this is it.

Read More...

What we do at Vestact

Vestact manages money for private clients, in Rands in Johannesburg and in US Dollars in New York. We offer individualised investment accounts, and a high level of personalised service. Through low fees and effective stock-picking, we have delivered industry-beating investment performance. For a longer description of how we go about the business of asset management at Vestact, click here.

To open an account, call us on 087 985 0939, or come in and visit us at our offices at 24 Crescent Drive, Melrose Arch, Johannesburg.

Stocks which we currently recommend

Amazon.com is the world's leading online retailer.

Apple is the global leader in tablet and smartphone technology.

Aspen is a rising global star in the pharmaceutical industry.

BHP Billiton is the world's largest industrial commodity mining company.

Brait owns fashion, retail and health club assets.

Bidvest is a diversified services company, which may re-organise its portfolio.

Cerner provides IT solutions in the healthcare industry.

Cisco is a global leader in routing and switching equipment.

City Lodge is a mid-priced hotel group in urban areas of Africa.

Curro is an independent education provider in South Africa.

Discovery is a technology-driven healthcare administrator and life insurer.

Facebook is the dominant global social media platform.

Famous Brands is SA's largest quick-service restaurant group.

General Electric makes power stations, aircraft engines and CAT scanners.

Google is the world's biggest search engine and online advertising platform.

Holdsport is a sporting and leisure goods retailer.

Johnson & Johnson is the world's largest consumer health and pharma company.

L'Oreal is a world leader in the manufacturing and sale of beauty products.

Luxottica is the world's largest branded sunglass maker and retailer.

Mr. Price is a fast fashion apparel and home retailer.

MTN Group is an emerging markets mobile telecoms giant.

Massmart is a big-box discount retailer in Africa, 51% owned by Wal-Mart.

Monsanto is a provider of agricultural products for farmers.

Mediclinic owns hospitals in SA, the UAE, the UK and Switzerland.

Naspers owns digital TV, internet, gaming and ecommerce businesses.

Nestle is a leading global food and beverages manufacturer.

Nike is a designer and retailer of running shoes and other sporting equipment.

Omnia is a fertiliser and explosives producer.

Richemont owns the finest luxury brands like Cartier and Van Cleef & Arpels.

Sasol is a global player in chemicals and fuels technology.

Starbucks is a roaster and retailer of coffee and fantastic foods.

Steinhoff owns Conforama and Pepkor.

Stryker makes hip and knee joint replacements and hospital beds.

Tesla is the world leader in electric vehicles and batteries.

Tiger Brands is a basic and branded food producer, expanding through Africa.

Under Armour is a fast growing sports apparel company.

Visa is a global payments technology company.

Vodacom is a South Africa-based communications provider.

Wells Fargo is the biggest retail and commercial bank in the USA.

Woolworths the leading organic food & clothing retailer in the Southern Hemisphere.

Zimmer Biomet is a musculoskeletal healthcare company.

Archived Reports

CNBC Africa Hot Stocks Videos

Newsletter Sign Up

Sign up for our free daily market newsletter.

Paul Theron's Tweets

Sasha Naryshkine's Tweets

Byron Lotter's Tweets

Michael Treherne's Tweets