So the "sell in May and go away" worked this year. The Rand is at R12.90 to the $ and every mine company is down scaling faster than their share price is falling, which is VERY fast! If you are a South African investor, your only saving grace is the depreciation of the Rand against the US$ and other currencies. I have been pulling a 12% return on every US$ I bought at the beginning of the year without even getting out of bed.
Now we all know the bad apple is actually China. They just got up and left the party, leaving us all with a major headache. So our eyes turn towards Uncle Sam off-course! They have to get up and help us because we are not capable of being forward thinking and productive. No, we would rather demand wage increases twice the rate of inflation and working as little as possible for it. We would also rather squeeze as much out of the the few productive companies and entrepreneurs in South Africa than providing uninterrupted power to do business.
So here is the deal. If you want me to pay taxes, which will provide you with the funds to develop the country, then you have to provide me with a stable and reliable platform and, understand that if I have to pay more than what I can earn from running my business, then I will close the shop and go fishing.
"Ask not what your country can do for you, ask what you can do for your country"
So in the South African version of this quote the"your country" is replaced by "ZUMA"
We have to do it for ourselves until the government wakes up. Here are some things to remember:
- Newspapers only tell the bad of a story. There are always some positive as well.
- Cash is king for only a short period of time. It has a very short shelf life.
- Inflation is you target for investment returns, not your neighbor's returns.
- Never focus short term, you might live longer than you think.
- People want to spend money, invest in those companies that give them the opportunity.
Remember, things change for the better, always!
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