In a recent study, researchers at Bridgewater looked into the top 10 companies in each decade and their subsequent performance. This is an important topic, because Vestact portfolios are focused on market-leading giants.

We aim to own the companies that will be the world's largest in 10 years' time. We want to pick the stars that are just entering the big leagues, and exit the ones going off the boil.

The Bridgewater study found that over long periods of time, almost all champions are dethroned. A second major finding was that dominant companies can stay up there for quite a few decades before going into decline.

Railroad companies dominated the US market from 1900 to the 1930s. They were replaced by chemical producers from the 1930s to the 1960s. Oil companies rose to prominence in 1900 but were largely tapped out by 2010. Auto manufacturers were also huge from the 1920s to the 1960s. The picture below is of the top-selling car in the 1950s, the Chevy Bel Air.

In the last two decades, IT companies have loomed large, crushing all other sectors and making more money than anyone expected. They have created new industries around web-based services, and transformed human productivity. These share price gains have been very good for Vestact clients.

We believe that today's IT champions will stay at the top for a good while longer, because of strong competitive moats (network effects, advantage on data acquisition, advanced technical capabilities), incredibly strong balance sheets, and their ability to acquire smaller innovative businesses. We will continue to hold them, but we are staying alert.

We also believe that pharmaceutical companies will grow in prominence as healthcare spending balloons. Eli Lilly just entered the top 10 by market cap.

I think it's a big advantage that we manage money in the US but don't actually live there. There is so much political noise in America, in the lead-up to their presidential election in November. The conversations around the weekend barbecues must be getting pretty heated. If you manage equity investments, these discussions could influence the way you manage money.

Sitting here on the southern tip of the African continent we are emotionally removed from talks about elections, housing prices, inflation, who is funding which war, taxes, government debt and so much more. Of course we have plenty to talk about with regards to our own country's issues but that won't influence our mindset around holding Amazon shares.

The market has gone from debating if the Fed would cut rates in September to wondering if it will be a 25 or 50 basis point cut. There are some market commentators who even think the Fed could cut by 50-basis points in September and another 50 in December! I think that is unlikely, but it shows how far sentiment has shifted in the last two months.

Locally, it's a coin toss whether SARB will cut interest rates in September. Our interest rate decision is scheduled for 19 September, a day after the Fed announcement. The SARB may be influenced by the fact that petrol prices will drop for a fourth consecutive month to a price 14c lower than we started in 2024. Prices have been very volatile this year, with petrol increasing by R3 a litre between January and May, but thankfully dropping R3.14 since then.

These interest rate cuts are very well-timed. It is happening when the global economy isn't looking as strong as it did a year ago but is still well away from a recession. To avoid a recession and get interest rate cuts is amazing. For equity investors, it is like having your birthday and Christmas at once.

Kering reported a larger-than-expected 11% drop in second-quarter sales, with revenues falling to EUR4.5 billion. The French luxury group, which owns brands like Gucci, Boucheron, and Balenciaga, attributed the decline to weak demand from Chinese shoppers.

Kering shares fell about 8% in New York following the announcement. This comes after LVMH's disappointing quarterly results, which also impacted shares in the luxury sector.

Sales at Gucci fell 19% in the quarter, worse than the expected 16% decline. Kering has been revamping Gucci with new minimalist designs from creative director Sabato de Sarno, aiming to attract wealthier clients.

However, a downturn in the global luxury market and economic issues in China, including a property crisis and high youth unemployment, have complicated these efforts. Group revenues from Chinese consumers dropped 25% during the quarter, with significant declines in Hong Kong and Macau. Despite higher revenue in Japan, Kering's sales in Asia fell 25% in the second quarter.

Deputy CEO Jean-Marc Duplaix noted a deterioration in sales trends in June that persisted into July. The company forecasts a 30% decline in the second half of its operating income, following a 42% drop in the first half to EUR1.6 billion. CFO Armelle Poulou expressed optimism for a gradual revenue improvement, particularly for Gucci.

How often do you clean your microwave? Researchers found thriving communities of microbes - Ovens used in homes are teeming with bacteria.

There have been global shortages of weight loss drugs. Eli Lilly has worked hard to overcome bottlenecks in their supply chain - Pirate producers of off-brand GLP-1s face prosecution.

Asian markets are mostly higher this morning thanks to a rally in tech companies. Equity benchmarks gained in Hong Kong, India, mainland China, and Taiwan, while they fell in Japan and South Korea. Chinese e-commerce giant JD.com is up 5.4% after reporting unexpectedly strong numbers.

In local company news, industrial company KAP anticipates up to a 115% increase in headline earnings for the first half of the year, after five of its six units performed very well as compared to last year. Do you know which brands are in the group? Two prominent ones are PG Bison and Unitrans.

US equity futures remain unchanged pre-market. It's too early on a Monday morning for US-based investors to have a firm view.

After a successful weekend for sporting South Africans, the Rand is trading at R17.82 to the US Dollar.

Well done everyone!