By Dr. Warren Brown, May 2020 Please see the article below written by Warren Brown on the impact of the new COVID-19 debt on South Africa. The short version of this article was published on page 6 in the 29/05/2020 print edition of Business Day. Click here if you would like to read the…
Following on from its 3rd consecutive Raging Bull Award, the MiPlan IP Global Macro Fund was selected for Finweeks’s fund in focus article by Timothy Rangongo in their 6-19 June 2019 print edition. Please see below for more details on the article. For all disclosures please visit www.miplan.co.za
With the world economy widely expected to decelerate, a growing number of central banks are delaying normalising their monetary policies. The stalled pace of policy normalisation is designed to combat advanced economies from falling into economic contraction. Indeed, liquidity was looser in the first quarter of 2019. The money supply data of significant economies such…
Economics is a minefield. The neoclassical school of thought dominates current economic thinking, including researchers who have suggested that there might be unique and stable equilibria in prices.
In early September, the US Federal Reserve published a note on its website discussing estimations of the long-term neutral rate of interest. Also known as r-star, in theory such an interest rate induces neither saving nor spending.
One of the primary conventions of financial theory holds that participants in an economy are essentially rational “wealth maximizers,” meaning that they will make decisions based on the information around them and in a way that is as reasonable as possible.
Global growth: recovery remains in place but slowing The dominant investment “story” since 2016 has focused on the extent of economic growth coupled with the “normalisation” of interest rates in the US and eurozone following the extraordinary stimulus measures introduced in the wake of the GFC (global financial crisis in 2008). Entering 2018, the global…
One of the most crowded trades by South African investors this year has been to send money offshore. It was inspired by at least two factors and possibly more. The first was an expectation of a more robust global economy,led by gains in the United States as well as Europe. The second was pessimism about…
Investment mandates are constructed with a traditional risk spectrum in mind that places government-issued or government-guaranteed debt at the least risky end of that spectrum after cash. The past several months since the March Cabinet reshuffle in South Africa have essentially challenged investors to invest in a framework where there is diminishing assurance that government…
Two key local developments in the past month were the release of the latest iteration of the Mining Charter, followed a day later by seemingly unwarranted comments by the Public Protector on the mandate of the South African Reserve Bank. Both events proved negative for the currency, continuing an unfortunate trend of negative news that…
