President Trump dialled down his trade war antagonism by pushing for less tariffs with Europe. This saw investors focus on other data points, which provided support for risk assets like the Rand. 


Last week we had a positive BRICs summit, the ECB held interest rates steady, US advance GDP came out at 4.1% from 2.2% previously, and China indicated willingness to ease monetary policy further to support domestic industries. 


Global growth remains robust with the IMF forecasting growth of 3.9% in 2018 and 2019. Although this will be skewed towards the US, it is still positive considering all the uncertainty investors face. Some investment professionals are concerned by the flattening of the US Yield curve, which increases the probability of a recession, but this is unlikely with global consumers being in a much better financial position than they have been since 2008. 


This week is a busy one with data points coming out for inflation, unemployment, GDP and interest rates for developed markets 


Long term investors should stick with their plan and accumulate stocks that are better value now, buying the dips as they come. Investors who have limited exposure to offshore investments, should use the current Rand strength to increase offshore investments.  


The week ahead: 

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Last week’s movers and shakers… 

Best Performers: AMS 11.8%, IMP 8.2%, TOR 6.9%, SLM 5.9%, DSY 5.2% 

Worst Performers: SNH -22.9%, HLM -14%, TSX -8.3%, ITU -7.4%, HMN -6.6% 


Other Economic data releases of interest… 


Long Term Ideas 

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