Many investors are currently getting a crash course in the markets, pun intended. I really don't think the pain is over yet, so stay strong and build your shopping list of what you want to buy and at what price. Remember, this is where true investors get to show their grit and discipline.
For a crash course in property, I wrote a substantial feature article on Growthpoint's update for the nine months ended March 2022. With a gigantic portfolio ranging from gems like the V&A Waterfront through to large, stinking you-know-whats like office buildings in Sandton, Growthpoint is the ultimate barometer for the state of the South African property market.
Make sure you read this piece and consider your property positions in this context.
In other news, there's a trading statement from the capital allocation gurus at Prosus and Naspers. Quite spectacularly, Prosus managed to invest $6.2 billion at the very top of the cycle in the frothiest growth verticals you can imagine, like food delivery among others. With the floor literally falling out of venture capital, what do you think those fair value adjustments will look like going forward?
Prosus is down 37% this year and Naspers has fallen 28%. If you went back a few years and told institutional investors that this would happen, they would've chased you out of reception and recommended that you pass at least two CFA exams before returning.
Luckily, you don't need to be a CFA t o have common sense.
For those details and all the others from a rather interesting day on the JSE, make sure you read Ghost Bites.
Every Friday, we are treated to the excellent summaries from the team at DealMakers of the corporate activity on the JSE and in Africa. They even mention unlisted deals that have come up in the news, like in this summary of the week's activity in mergers and acquisitions. You'll find the full list of articles below (including a piece on the reduction in the corporate income tax rate) and I encourage you to take a look.
From a macroeconomic perspective, keep a close eye on Europe. As we've seen before in times of strife, bond yields in the countries you want to go to on holiday have spiked. As the team at TreasuryONE highlighted to me yesterday, the word "fragmentation" is coming up as the European Central Bank called an emergency meeting on Wednesday. They are talking about a "new tool" to address fragmentation risks, whatever that may be.
The best economic hope for economies like Italy is that the Germans and French want to keep travelling there without needing a visa. I noticed on CNBC that t he Dutch finance minister said that Europe mustn't "talk itself into a recession" - these are wild times!
If your business has exposure to forex movements, then learning more about hedging these risks or getting the best possible rate would be a worthwhile investment of your time. Check out the TreasuryONE website to see the variety of solutions they offer for forex, treasury and cash management.
On the podcasting front, make the most of a quiet day in the office (or even a day of leave) and listen to the latest Magic Markets show. In episode 80, we spoke to the team at AnBro Capital Investments about how they distinguish between hot stocks and hot air when it comes to growth investing. We also discussed another two interesting examples of growth stoc ks in the healthcare industry. Don't miss out on another great learning opportunity with that team. You can listen to the show here.
My inaugural episode of Ghost Stories, featuring Charles Savage (founder of EasyEquities), seems to have been very well received by the market. I'm grateful for all the positive feedback and encouragement. To see what all the hype is about, listen to it here.
That's it for today. Enjoy the content and stay calm in these markets!
