Ince Connect

Tuesday 22 June 2021

Good morning Voornaam,

Watching the markets every day can become unhealthy for most investors, especially when there are periods of high volatility. In times like these, it's important to stay true to your investment thesis and remember why you made certain decisions in the first place.

The FOMC meeting last week and the subsequent behaviour of the US yield curve sent the markets into a frenzy. One casualty has been Bitcoin, trading at around $32,500 at time of writing. If Bitcoin breaks below the support lines from January at around $31,200 then things could get really ugly.

2020 was volatile because of the pandemic. 2021 has been volatile because of the stimulus pumped into the global economy as a result of the pandemic. For investors, these are tricky times.

I find market cycles fascinating. Big Tech was the talk of the town in 2020, yet in 2021 the giants like Apple and Google are facing incredible regulatory scrutiny. The share prices of automotive manufacturers tanked during lockdown (except for Tesla), yet companies like Ford have been brilliant investments in 2021. I unpack both of these stories this morning.

Locally, the big story was the release of results by Naspers and Prosus. There's a lot to take in and it's worth reading management's commentary on the various business units, which you'll find in the company news and announcements section this morning.

Other local company news includes another helium discovery by Renergen and confirmation that Grand Parade Investments (GPI) is not giving up on the Burger King deal without a fight. GPI is currently "engaging" with the Competition Commission on a decision that I have been highly critical of.

In case you missed it yesterday, Episode 30 of Magic Markets is a terrific discussion on the Australian market and the attractiveness of the small cap space. There are plenty to choose from and liquidity is much better than it is on the JSE. Mark Tobin of Coffee Microcaps joined the show to give us an overview of the Australian market.

Good luck for another day in a wild market!

The Finance Ghost

Follow @Finance Ghost

Local and Offshore Market News

An Apple a day doesn't keep antitrust away

Apple is now under investigation by German antitrust authorities. This is just the latest news in a long line of regulatory risks for the FAANG giants. Read More

Ford and General Motors increase their earnings guidance

Despite supply chain challenges from chip shortages, Ford and General Motors have increased their second quarter earnings expectations. Read More

High on helium

Renergen has announced a 1.1% helium discovery at its Evander project. Read More

Another bite at Burger King

Grand Parade Investments isn't going down without a fight, as the parties "engage with the Competition Commission" re: the Burger King decision. Read More

Company Notices and Announcements

Naspers reports a sharp increase in earnings >>

Northam Platinum Limited >>

Emira Property Fund Limited >>

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