South African index tracking funds For investors considering adding equity exposure to their portfolios by simply buying an index tracking fund, it’s important to know exactly what you’re buying. That’s because your holdings – and the risk you take – can end up being quite different, depending on which JSE equity index you choose. The […]
It is difficult to be a fence sitter when it comes to investing and wealth creation. Either you are a saver and you are providing for your needs, both present and future, from the sweat of your current labour, or you are a borrower, borrowing from your future to fund your current lifestyle. Sadly, most […]
Inventories play a significant role in the pricing of commodities: when they are low prices tend to rise, while excessive inventories depress prices. However, for most commodities other factors, such as the cost of production, are equally important. Precious metals, which can act as a store of value, are a notable exception. In an in-depth […]
LOCAL OUTLOOK Rezco Asset Management continues to maintain a cautious market outlook. While there is some overlap locally and internationally, we believe that there are predominantly different forces at play. Preserving capital* and creating wealth continues to form the bedrock of our investment philosophy The high local risk-free rate in fixed income instruments means that […]
The strong run by European markets, as well as other markets in general, leading to the Brexit Referendum that occurred on the 23rd of June, reflected that market consensus was for a vote to remain in the European Union. From a pure capital markets perspective, the vote by Britain to leave the European Union is […]
Quality: “The standard or nature of something as measured against other things of a similar kind; the degree of excellence possessed by a thing.” – Oxford English Dictionary definition ‘Quality investing’ has become a popular investment style and a particularly strong selling point of late. As the quote above suggests, measuring quality is, by its […]
The subject of fees The subject of fees has always been debated and even fiercely negotiated between role players in the financial services industry. In this article we will be painting the picture from an angle that we believe investors miss sometimes. To put everything in context we will cover the different components of the […]
At Salvo Capital we are constantly trying to improve communication with our clients. For us to do this effectively we need to understand the psyche of our clients and to accommodate and manage the potential risk that an investor might pose to his/her own investment due to investor behaviour. The intent of this document is […]
Your journey as an investor started with a plan on day one. Uncertainty has the ability to make one forget about the plan which made so much sense initially. It is for this reason that it is necessary to look at the plan and the principles used to construct your portfolio to achieve your goals. […]
Power of Compounding My favourite illustration of the power of compounding growth is the story of what happens when a piece of paper is repeatedly folded in half. At the first fold, the paper doubles in depth. At the second fold it doubles again, to be four times as thick as it was at the […]
