Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
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I have reduced a lot of my investments in the Stock Market at the moment, because I think that prices are already very high. I don’t see much room for the market to grow at the moment, but that does not mean, for example, on our local market that Rand hedge shares cannot go up. That is shares which, every time the Rand decreases due to the investments, see their price going up. If you are a long-term investor, whether in your retirement annuity or in terms of putting a monthly contribution into the Stock Market, then I would certainly carry on doing that, but the market had such a tremendous run since the lows of 2008 when I wrote in my legal newsletter that anybody buying at that time just could not lose, the things cannot possibly go up over the next 10 years as much as they have over the last 10 years. So many markets are at all time highs, not just in terms of their price, but relative to the earnings of the companies I think the market is now much more dangerous than it has been at any time in the last 10 years. That of course does not mean it cannot go up – I don’t believe in Bitcoin at all either and I don’t think Bitcoin has any real value, but that does not stop people speculating in it.
I just think if you are a person who believes in long-term value in terms of buying shares based on what the profits of each company are that shares are very expensive now. A few years ago, by way of example, you could have bought Apple shares at a considerable discount relative to their earnings than what they go for now. I guess what I am saying is that a few years ago the markets had screaming value all over the place, but right now most global economies, other than the South African economy, are running at full speed, companies are making bigger profits than ever before, they had the benefit of tax breaks in the US, and all of these things are unlikely to be repeated in another year’s time, so I just don’t think that in 2 or 3 years’ time we will be talking about a market that is 30% or 40% higher than the current market.
Posted by Michael de Broglio on Thursday 28-Jun-18
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Comments
Suvashnee said:
on Friday 13-Jul-18 08:51 AM
I come from the banking industry and the rate that clients are given are ridiculous. To invest R20000 at a rate of 6% is just not worth it. I don't invest on the local stock exchange but I have a few life covers and retirement annuity. Personally its the safest.
Melissa said:
on Wednesday 11-Jul-18 11:38 AM
The only investments that I have is my retirement annuities and that is about how far I would go with investments
Michelle D said:
on Thursday 05-Jul-18 05:36 PM
Investments are very risky at the moment. Bitcoin, which was extremely lucrative two years ago, has now completely plummeted. And Steinhof, which was one of the top 10 safest investments has gone to ruin. My friend bought shares at Steinhof when they were R85...they're now R5 a share and that's considered a measurable growth to two months ago. At least their shares are cheap now. Overseas investments are the safest bids at the moment.
Jadine Richards said:
on Thursday 05-Jul-18 08:53 AM
I tried investing a bit through my bank about a year ago. I didn't see much growth at all and it was discouraging. I am more comfortable with the idea of saving but I suppose one needs to make bold moves to achieve anything worth while.
Angelique Jurgens said:
on Monday 02-Jul-18 11:41 AM
Not interested in taking risks - its all a gamble. I will unfortunately be the one that would rather be safe with my money and put everything in my savings account, RA or tax free savings account. I know interest on fixed deposit accounts is not quite incredible as investment accounts but I would rather be safe than sorry. My mom just told me she lost R3000.00 - not a big amount but who knows what that R3000 amounts to. Besides that I have seen how in 5 years you may not even make anything extra from an investment account but rather get out what you put in than lose it all.
Megan said:
on Monday 02-Jul-18 11:16 AM
I do not know much about the markets, I'm not particularly interested. I do feel one cannot be too sure of where to invest thus I agree retirement annuity is the safest bet as you know what growth you will have and it is constant rather than the risk of investing in the markets.
Daniella said:
on Monday 02-Jul-18 11:15 AM
The stock market is way to risky and adventures for me - the whole high risk, high reward thing is too scary for me.
Alexis said:
on Monday 02-Jul-18 09:00 AM
i do not know much of this sort of thing to be honest and have never invested besides for a possible unit trust - but life is very expensive and I as well agree with David to say that all should be put in your investment for retirement
Henrietta said:
on Monday 02-Jul-18 08:37 AM
I must say in a recent conversation with my mother she learned that she has lost over R300000.00 in the last 6 months. Its scary when you look at it that way. I am also not one to invest, scared of the unknown but it's when you take risks and get out of your comfort zone that you actually win some times. I think it is safer to just invest in your RA seeing that life is so expensive nowadays.
Shristi said:
on Friday 29-Jun-18 04:35 PM
I was never one to pay any attention to the stock market however when Bitcoin starting doing well a while back that peaked my interest and I started following the markets. If I am to be honest I would rather put more money into my RA than invest it shares.
Sarah said:
on Friday 29-Jun-18 01:24 PM
I agree with David rather invest in your retirement . Price of living is so high right now.
Joyce said:
on Friday 29-Jun-18 01:19 PM
I think one needs to be cautious in investing.
Mathilda Du Preezm said:
on Friday 29-Jun-18 11:59 AM
I have never invested my money (scared of the unknown)
But I do have a separate account where I have been putting in money every month since the day I started working and I must say it's not looking to bad lol
I’ll probably look to invest the money at a later stage, but will go and do my research first
Fikile said:
on Thursday 28-Jun-18 03:41 PM
I don't i want to invest my money on any stock market simply because when they shut down they don't even tell you or worse when they have money problems they don't call you and let you know. I bot shares at Multichoice and i will be attending a meeting some time next week about my investments with them
Nina said:
on Thursday 28-Jun-18 09:00 AM
The markets are definitely very unpredictable at this stage and although bitcoin seemed very exciting a few months ago, it is quickly turning for the worst. Makes one wonder if bitcoin is really the future... At this stage a less risky more stable type of investment is the way to go.
david said:
on Thursday 28-Jun-18 08:43 AM
i am a realist. i know absolutely nothing about the stock market, and have no real interest, so i would never take the chance of investing. that said i am a very large contributor to my retirement annuity. i do not want to be a pensioner living in a flat in hillbrow eating dog food...
Jessica said:
on Thursday 28-Jun-18 08:40 AM
The stock market is a complex animal. To make the most of the stock market today, you have to have the latest market news and information and it certainly is not a buyer's market.
I started my RA at the age of 22 and I do hope that it will yield good results. Liberty have recently been 'hacked' which makes me a little apprehensive because it will not be my choice of investments that be the determinant but rather cyber crime... Scary stuff!
patrick said:
on Thursday 28-Jun-18 07:43 AM
A majority share holder in Shoprite I selling his shares after he lost all his investment is Steinhof(which he is suing for over R59 million) in favour of cash . it shows that times are hard and you cant predict the markets.
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
