vestact posted: " Market Scorecard US markets retreated yesterday over the prospect of slowing growth and high inflation. The war in Ukraine and sanctions on Russia triggered a record-breaking surge in commodities. Russia and Ukraine account for more than a quarter"
US markets retreated yesterday over the prospect of slowing growth and high inflation. The war in Ukraine and sanctions on Russia triggered a record-breaking surge in commodities. Russia and Ukraine account for more than a quarter of the global grains trade and supply constraints have pushed wheat prices to hit a 14-year high. Brent oil rallied to around $110 a barrel, a 7-year high and European natural-gas prices jumped over 24%. Chaos!
In company news, investment holding company PSG announced that they are delisting from the JSE, pushing its share price up 19%. Target, the Minneapolis-based retailer, announced annual revenues of over $100 billion for the first time, helped by stronger traffic in its stores. The stronger than expected sales resulted in its shares jumping 9.8%. Glencore, the world's largest commodity trader is reviewing business ties with Russia.
At the end of the day, the JSE All-share closed up 1.34%, the S&P 500 dropped 1.55%, and the Nasdaq fell 1.59%.
Our 10c Worth
One Thing, From Paul
I'm in New York this week and have visited a few of the Apple stores in the city. They are all beautiful spaces, packed with customers and well-organised.
As I walked around the tables displaying the new iPhones and MacBooks, I was thinking about why Apple has been such a good investment.
Apple has grown its total addressable market as it has developed wonderful new devices that make accessing the internet and using online services fun and simple.
As a result, it has delivered tremendous revenue growth at ever-rising margins. Its earnings (profits) have grown even faster than its revenues. I reckon that it will continue to do that. You should buy the products, and own the stock.
Byron's Beats
Last night my son woke me up for a toilet trip. I couldn't get back to sleep, so I read Warren Buffett's latest letter on my phone. Fortunately, or unfortunately, I found it so entertaining that it did not help me fall back asleep.
The man is a true genius. Sadly he didn't get much fanfare last year when growth stocks were all the rage. But this year, wounded investors are pouring into his letter for pearls of wisdom and reassurance.
The biggest takeaway for me is that if you want to invest long term, like "death do us part" long term, then you have to be long America. He speaks of the US government as a partner of Berkshire Hathaway.
In the 1950s Berkshire paid $100 a day in taxes. Today they pay $9 million a day. Out of their $140 billion in cash and equivalents, $120 billion sits in US treasuries. This means they are now lending the money back to the government. Capitalism is an amazing thing, and America has made the most out of it.
If you are feeling anxious about the current conditions we are in, I urge you to read the letter. Even if you are not feeling anxious but just want to be a better investor, read it. It will be time well spent, especially at 2 in the morning.
A silver lining to the war in Eastern Europe is that people have stopped focusing on Covid for a while. Hopefully, the worst of the virus is behind us. Despite the destruction it caused from death to economic lockdowns, humanity was still able to advance medical research.
Exciting breakthroughs in vaccine technology means that we are close to having preventative medication for malaria and certain types of cancer. There are even some researchers using RNA technology to try to create an HIV vaccine.
Medical research has also expanded into other covid-impacting areas. Things like better understanding obesity or blood clotting or the role that vitamins play in preventing infection and healing timeframes. The lockdowns have also resulted in an increased focus on mental health.
Going to 'war' against Covid has renewed humanity's focus on healthcare and unlocked resources that would have otherwise gone elsewhere. The last two years have been unpleasant but it hasn't been all bad.
Bright's Banter
Apple is rumoured to be working on a new device featuring a large foldable display that can serve both as a laptop and a tablet. This iPad-Mac hybrid will have two 20-inch folding displays, with functionality based on touchscreens, creating a keyboard and trackpad.
According to DSCC's Ross Young, the iPhone-maker is discussing this product with suppliers. As a Mac fanboy, I'm always excited when Apple is about to launch a new product, however, this product seems to be far out in the unchartered backwaters. At least we know the Apple research machine is still firing on all cylinders.
WordPress.com
No comments:
Post a Comment