For your convenience we’ve summarised two recent articles by Allan Gray and Flagship Asset Management that we find interesting.
Allan Gray’s view on insuring your investment:
- One needs to balance the risk of losing money with the risk of missing out on future returns
- We’ve moved early in order to protect the loss of money
- The market is currently pricing in a strong sustainable earnings growth
- This is leaving little room for disappointment
- The recent lower returns of our funds relative to others is our cost of insurance against disappointment
Flagship’s view on high international debt levels:
- Global growth of +4% is primarily being driven by government loans
- Growth in economic demand should lead to higher interest rates
- The US is in the worst position compounded by its recent healthcare reform package
- Developed world growth should slow when government stimulus (through loans) declines
- This leads to emerging markets (including South Africa) becoming more attractive
For more investor advice email us at info@investonline.co.za, phone us on 021-794-2469 or visit the Fund Managers’ Comments section on our website.
