Market scorecard
US markets were iffy yesterday. The S&P 500 logged a third straight daily loss, but the Nasdaq managed to sneak higher. Institutional investors might be choosing to buy 10-year US Government treasury bonds instead, because their yield rose back above 4.5%. This came after a Republican tax and spending bill passed the House, raising fears of bigger US deficits and lower creditworthiness in the years ahead.
Bitcoin just reached a new intraday high of $111 986.44. Make of that what you will.
In company news, Bill Ackman's Pershing Square has taken a stake in Amazon, calling it a "fantastic franchise" and saying the price was just too good to ignore. Elsewhere, Advance Auto Parts surged 57% after quarterly sales weren't as bad as feared, proof that in this market, "less bad" is sometimes good enough.
In short, the JSE All-share closed down 0.28%, the S&P 500 fell 0.04%, and the Nasdaq was 0.28% higher. Let's see how we go today.
Our 10c worth
One thing, from Paul
To survive in the modern world, you need to maintain a cool head, but find a way to remain curious. That's this week's Friday advice.
These crazy times require a steady temperament. Hold the line, don't overreact, and avoid making too many bold statements. Try not to arrive at strong opinions too quickly. Don't change your investment strategy every week.
Having said that, you can't afford to stagnate mentally. Morgan Housel asks, "What strong belief do I hold that's most likely to change? How do I know if I'm being patient (a skill) or stubborn (a flaw)?"
Neuroscientist Anne-Laure Le Cunff (pictured here) says, "Curiosity makes us feel good about the prospect of discovering something new. Change, by nature, introduces uncertainty. Curiosity transforms uncertainty from a threat into an invitation, because it increases our tolerance for prediction error, making us more flexible in our thinking, less reactive, and better at updating our mental models."
She says we should ask "what if?" instead of "what now?"
Byron's beats
I read a lot of articles and blogs about the US because that is where we invest our money. But when it comes to books, I love reading about Africa. I am obsessed with this continent and its colourful history.
I recently finished a biography, Harry Oppenheimer: Diamonds, Gold and Dynasty by Michael Cardo. It's an in-depth account of the Oppenheimer dynasty, starting with their humble beginnings in Germany. Harry was a pivotal person in the development of South Africa's economy and its politics. The book covers many of his personal milestones, against the backdrop of South African history in that era. It was a fascinating period, from 1908 to 2000.
After finishing that book, I was inspired to learn more about Cecil John Rhodes. That led me to a book called The Scramble for Africa by Thomas Pakenham, which I have just started. I am also halfway through Capitec: Stalking Giants by TJ Strydom. I read multiple books at a time, and these have both been good so far.
Hopefully I have encouraged some of you to read these titles. Please let me know if you have any other good recommendations.
Michael's musings
I've been on the hunt for courses about AI, on how to better utilise this new tool at work and for life in general. It is important to keep learning and stretching yourself.
In my search, I was reminded about the website edX, which gives you access to programs from some of the world's top universities, including Harvard, MIT, Oxford and Yale. Some of the courses are offered for free, with the catch that you don't get official certification for attending the course. Depending on the topic, not having certification is fine.
Now that the weather is turning, and you will be spending more time indoors, maybe sign up for one of the courses and learn a new skill?
Bright's banter
Nike is getting serious about shelf space, both physical and digital. The new management team is clearly back in the game, doing what they can to win back customers.
After stepping away from Amazon in 2019 to focus on its own direct channels, Nike is now re-engaging with them and other major partners, signalling a more pragmatic, customer-first approach under CEO Elliot Hill.
On the Nike.com portal, AI-powered search tools are being deployed, including curated experiences with retail partners. The Nike app on smartphones is being tweaked.
The goal is to make it as easy as possible for shoppers to buy Nike, wherever they prefer to shop. In retail speak, they're fighting for the gondola ends. Nike's clearly trying to tighten the laces and sprint back into top form.
Linkfest, lap it up
Intelligence evolved at least twice in vertebrate animals. Complex neural circuits likely arose independently in birds and mammals - The beauty of evolution.
Would you take a seasonal injection to cure allergies? An old asthma drug is proving useful for long-lasting relief - We're on the verge of a universal allergy cure.
Signing off
Asian markets bounced back this morning, setting the MSCI Asia-Pacific index up for a sixth straight week of gains. Inflation data out of Japan showed core consumer prices (excluding fresh food) rising 3.5% year-on-year in April, the fastest pace in two years.
In local company news, Life Healthcare is having a decent run halfway through its financial year. Revenue rose 8.1% to R12.1 billion, while earnings climbed 9%. Elsewhere, Investec's latest numbers show they're holding their own in a tricky market. Revenue was up 5% to GBP2.19 billion, and their Wealth & Investment arm in South Africa did well.
US equity futures are slightly lower pre-market. The Rand is holding steady at around R17.93 to the US Dollar.
It is Memorial Day in the US on Monday, so things will be quieter than usual next week.
Have a good weekend.