Hello Voornaam,
Welcome to another Ingham Analytics weekly research summary, highlighting what has been recently published and what has been among some of the most read notes in the past few weeks or months.
This week we've issued a Trader entitled "Iron ore and steel defies COVID-19 macro gloom" and an Insight entitled "Why do central banks do what they do?"
The first note will be of interest to commodity market and mining company investors as it drills down to the latest developments in the iron ore and steel market in China - a pivotal country as it accounts for approximately half of commodity consumption in the world. Strength in iron ore and steel prices, together with weakness in the oil price, are positives for earnings. BHP and Kumba are mentioned as two stocks of interest (Anglo American investors would be interested too as the mining giant owns 69.7% of Kumba).
The second note poses the question, what could the South African Reserve Bank do that would be a fool's errand that will end badly for the country? And impact your financial assets. Top trader Andrew Kinsey takes on central banks for being far more contentious than they should be, meddling where they shouldn't, with all sorts of distorting effects.
Andrew's note followed on from Mark Ingham's note last week, a Covid-19 credit markets Insight entitled "Lower for longer on rates?" This examines a strange situation locally of a bifurcated interest rate market and it looks at international precedent for the phenomenon of high and rising debt and lower yields, and what it could mean for South Africa - and your wealth. Another one for those who have an interest in bank stocks.
If you haven't seen it, you may like to read "Fixed income leads the way for equities" where we were ahead of the market in signalling stocks and bonds diverging, now being picked up by other market commentators, especially in the US.
Other recent popular notes based on downloads include "South African economic and financial fragility", "Eurozone Stress Fractures - Dj vu all over again", "Whose telling fibs, equity or credit?", "A raw state" (an update on Sasol), "A negative endowment" and the "The volatility of low volatility". And many others.
We bring an international dimension to our research. In these troubled times, we think it crucial to give a holistic sense of things and think strategically. These volatile markets can also be profitable markets. We, like you, have skin in the game.
Thank you all for visiting us.
