Investment Postcards from Cape Town

Stock Market Returns – The Wonder of Compounding

Prieur du Plessis — Fri, 25 Jul 2008 09:07:10 +0000

Albert Einstein described compound growth as the eighth wonder of the world. Although he may have passed away in 1955, the concept of compounding remains the single most important principle governing investment. This post provides the empirical evidence.

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Anyone for a 100 billion dollars?

Prieur du Plessis — Fri, 25 Jul 2008 06:35:21 +0000

Full marks for eBay entrepreneurs for stepping in where forex traders have lost count of the zeros being added to the Zim dollar every few days. How about paying US$83 for the new Z$100 billion bank note! Although the novelty value of the Zim note is surging, the sad truth is that the note is not worth enough to buy a loaf of bread.

Please visit my website (by clicking on the heading above) for the full article, as well as other interesting investment snippets.

Video Interview: Roubini – More pain, but not Armageddon

Prieur du Plessis — Thu, 24 Jul 2008 14:57:04 +0000

Nouriel Roubini, professor at New York University and chairman of RGE Monitor, is renowned for his bearish stance on the US economy and stock markets. Henry Blodget and Aaron Task have just conducted a three-part video interview on behalf of Yahoo Finance with Roubini on a variety of topical issues. This is the subject of this blog post.

Please visit my website (by clicking on the heading above) for the full article, as well as other interesting investment snippets.

Louise Yamada: Bearing Up

Prieur du Plessis — Wed, 23 Jul 2008 18:55:11 +0000

This post features an interview by Kate Welling with Louise Yamada, top-ranked "Institutional Investor" technical analyst. Louise's track record is just too good to be ignored, especially when she concludes the interview by saying: "I'd rather be out of the market wishing I were in, than in the market wishing I were out."

Please visit my website (by clicking on the heading above) for the full article, as well as other interesting investment snippets.

Stock Market Performance Round-up: Dancing to the Same Tune

Prieur du Plessis — Mon, 21 Jul 2008 10:17:02 +0000

Factoring in last week's stock market rebound, I have put together a table of global stock markets’ performances over various measurement periods. The numbers speak for themselves and can best be summarized in a single sentence: Despite the variation in the economic impact of the credit crunch, stock markets have by and large been dancing to the same tune.

Please visit my website (by clicking on the heading above) for the full article, as well as other interesting investment snippets.

Words from the (investment) wise for the week that was (July 14 – 20, 2008)

Prieur du Plessis — Sun, 20 Jul 2008 08:49:58 +0000

The SEC’s announcement to curb naked short selling, together with a dramatic drop in oil prices and a series of better-than-feared earnings announcements from US banks, triggered a recovery in investors’ risk appetite, resulting in a strong stock market rebound. Although the near-term outlook has improved and the long-awaited technical rally has probably commenced, it is premature to cast caution to the wind. Read all about this in my weekly review, highlighting some thought-provoking news items and quotes from market commentators during the past week.

Please visit my website (by clicking on the heading above) for the full article, as well as other interesting investment snippets.

Words from the (investment) wise for the week that was (July 7 – 13, 2008)

Prieur du Plessis — Sun, 13 Jul 2008 09:10:12 +0000

"Finance is the art of passing money from hand to hand until it finally disappears," said Robert W. Sarnoff. This is certainly the way it looked last week as the fall-out of the credit crisis deepened. Markets had investors feeling dazed and confused after another roller-coaster week amid further evidence of the deteriorating health of the US financial sector and a fresh rise in oil prices. Read all about this in my weekly review, highlighting some thought-provoking news items and quotes from market commentators during the past week.

Please visit my website (by clicking on the heading above) for the full article, as well as other interesting investment snippets.

Donald Coxe’s Investment Recommendations (June/July 2008)

Prieur du Plessis — Tue, 08 Jul 2008 05:38:31 +0000

Donald Coxe, Global Portfolio Strategist of BMO Financial Group, has established a great "big picture" track record and built a large following over the years. His eloquently phrased investment recommendations are particularly insightful and are repeated in this post in an attempt to make sense of the troubled times encountered by financial markets.

Please visit my website (by clicking on the heading above) for the full article, as well as other interesting investment snippets.

Market Fundamentals are Appalling

Prieur du Plessis — Sat, 05 Jul 2008 19:57:46 +0000

A fascinating discussion a few weeks ago in welling@weeden with Albert Edwards and James Montier of Société Générale is republished in this post. They are, in a word, skeptics, and at this juncture most deeply skeptical of any and all notions that "the worst is over". The recession, which has barely begun, is more likely to be deep than shallow, market valuations are hideously expensive and the "flation" policymakers should be worried about starts with de-, not in-.

Please visit my website (by clicking on the heading above) for the full article, as well as other interesting investment snippets.

Words from the Wise: Gone Fishing (in Switzerland)

Prieur du Plessis — Sat, 05 Jul 2008 19:53:38 +0000

I find myself in the Swiss Alps this weekend, spending a few days with my family in the picturesque village of Veysonnaz. While tranquillity reigns and the family delights in having my attention for a change, the bad news for readers is that "Words from the Wise" is taking a break this Sunday.

Please visit my website (by clicking on the heading above) for the full article, as well as other interesting investment snippets.