The South African Policy Disconnect – Is It Accelerating The Country’s Drift To Populism?

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Market Commentary, Market Insights

South African financial assets have recently enjoyed strong gains on the back of the election of the perceived market reformist Cyril Ramaphosa as the new president of the country’s ruling political party, the African National Congress (ANC), in December. The country’s currency, the rand, in particular appreciated strongly in December, gaining more than 10% against the US dollar for calendar 2017. Since making a cyclical bottom in January 2016, the iShares MSCI South Africa ETF (NYSEARCA:EZA) has nearly doubled.
https://seekingalpha.com/article/4134348-south-african-policy-disconnect-accelerating-countrys-drift-populism

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Myths And Narratives Of The U.S. Oil And Gas Industry

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Market Insights

In this article, we will take a closer look at the United States (U.S.) Exploration and Production (E&P) sector (NYSEARCA:XOP), and in particular address some of the narratives or perhaps “myths” that continue to depress valuations in the sector or at least with respect to the smaller or mid-tier producers.
https://seekingalpha.com/article/4152752-myths-narratives-u-s-oil-gas-industry

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The U.S. Dollar And Crude Oil – Has The Time Come For A Regime Change?

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Market Commentary, Market Insights

Blurb-In this article we discuss the relationship between the US Dollar (NYSEARCA:UUP) and crude oil (NYSEARCA:USO), arguably the most important currency and commodity in the global economy today. http://www.seekingalpha.com/article/4121543

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An Analysis Of Recent EIA Shale Basin Productivity Data

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Market Insights

In this article, we take a more detailed look at the most recent EIA productivity report released for October 2017 and assess what, if anything, the data means for US oil production and energy prices (NYSE:USO) as well as companies in the energy sector (NYSE:XLE) moving forward. Click here to read more

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The Growing Digital Currency Market – What Does It Mean For Investors?

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Market Commentary

We recently put together this article on the digital currency market for Seeking Alpha. Click on the link below to read the full piece. https://seekingalpha.com/article/4099843-growing-digital-currency-market-mean-investors

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The Outlook For Oil – Seeking Alpha Article

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Market Insights

We recently put together an article for Seeking Alpha labelled "The Outlook For Oil: Are Concerns Regarding U.S. Production Growth Overblown?" Click here to read the full article.

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The Outlook For South African Financial Assets

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Market Commentary

Summary

  • South Africa officially entered a recession in Q1 2017 and outlook remains poor.
  • Weak domestic demand and stronger Rand have helped contain inflation.
  • Improved inflation outlook opens the door for rate cuts in H2 2017.
  • This will support South African equities and bonds, although further appreciation in the Rand from current levels does not appear sustainable.
 

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The Rise Of Electric Vehicles And Autonomous Driving Technology – A Contrarian Perspective

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Market Insights

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Are Corporate Bond Yields Accurately Reflecting the Rise in Corporate Leverage

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Market Performance

Corporate bond yields in the US remain near or close to historical lows (or at least since the 1950s), with the average yield on AAA rated debt trading at roughly 4%. Although we focus on US corporate yields and data in this article, the same trend is reflected across all major developed economies. Even in many emerging-market economies, despite the correction in late 2015 / early 2016, general corporate yields still remain well below the levels that prevailed prior to the Global Financial Crisis (GFC) in 2008.  

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Does rising US labour cost inflation pose an upside risk to the inflation outlook?

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Market Insights

One of the conundrums of the current economic expansion in the United States has been the tepid wage growth evident in the recovery thus far. Although wage growth has picked up somewhat over the past year, it remains in a band between 2.5% and 3% and below the levels of wage growth seen prior to the last recession in 2007. This conundrum is all the more perplexing, given that the official unemployment rate has continued to decline to a new cycle low of 4.4%.  

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