Financial freedom

05 September, 09:07 am

Market scorecard

Wall Street ended firmly higher yesterday, with both the S&P 500 and Nasdaq up almost 1%. Attention now shifts to today's jobs report, which will give a clearer read on the Fed's next move. Still, with rate cuts largely priced into the rally, markets seem confident the trend is in their favour.

In company news, Broadcom popped 4.6% in late trading after delivering strong results and upbeat guidance. Elsewhere, Lululemon downward dogged 15.7% as its latest earnings showed that the yoga wear darling is struggling to escape a sales slump. Lastly, Tesla made headlines by opening its robotaxi app to the general public, hinting that the much-hyped autonomous service could soon expand beyond its early testers in Austin.

Izolo, the JSE All-share closed down 1.07%, the S&P 500 rose 0.83%, and the Nasdaq was 0.98% higher.

Our 10c worth

One thing, from Paul

Here's some unsolicited Friday advice: work harder.

In my (not so humble) opinion, the harder you grind, the more you'll achieve and the happier you'll be. Life isn't supposed to be easy, some suffering is required along the way, in your quest for greatness.

Nikita Bier (an intriguing fellow, currently doing important work at Twitter/X) joked recently: "If you are under 100 years old and not working at least 80 hours a week, you will pay the price later in life."

Have you heard of the 9-9-6 schedule? You have to work from 9 am to 9 pm, six days a week. This madness is prevalent in some Chinese tech companies. Heh? What about work-life balance and employee well-being?

Haha, give it a try? Have a good weekend, and don't forget to do some work tomorrow.

Byron's beats

Google is up 12% this week after winning its antitrust case against the DoJ, which was looking to break up the business. One of the reasons the judge decided that Google wasn't a monopoly is because the search giant is facing increased competition from AI chatbots.

Wow, things can change very quickly in the tech world, and it is a good example of why governments shouldn't meddle with businesses. Eventually, the competition will come; that is how capitalism works.

I am very happy to see that Google no longer has to sell Chrome, which was one of the suggested solutions. The Chrome page is like Google's home page. All your accounts like Gmail, Drive, YouTube, Maps and Gemini are on the top right. Naturally, front and centre of the page, is Google search.

Google dominates search because they basically invented it and then worked very hard to keep the product better than the rest. They should not be persecuted for that. US tech companies are the current crown jewels of the country. They pay the most taxes, employ millions of well-paid people, enhance productivity, have access to crucial data and are constantly innovating. They should be celebrated and nurtured by the regulators.

Michael's musings

The South African banking sector is evolving quickly. Discovery announced this week that its bank is finally profitable, Capitec is the most valuable local bank, and Old Mutual plans to have its new bank operational by the end of the year.

Added to the mix is Shoprite who plan to expand their banking offering. They already have all the necessary infrastructure in place through their massive store network and trusted brand, so it makes sense for them to pursue this route.

In what is becoming a very crowded sector, Old Mutual might struggle to find a gap. It is the legacy banks that probably have the most to worry about though. Their high fees and crappy service doesn't make for a winning formula. The biggest winner here is the customer, who has more choice and a better banking experience.

Bright's banter

What makes investment management so rewarding is that it's not really about shares or markets, it's about people. We get to do the work we love by studying businesses, testing ideas, borrowing wisdom from the best minds, and building portfolios that we think will stand the test of time.

However, the real passion comes from seeing what that means for our clients. Watching wealth grow isn't just numbers on screens; it's financial security for a family, options for the future, and freedom to live life on your terms. That's what excites us.

We do the heavy lifting through researching, investing, and staying disciplined so that our clients can enjoy the results. There's nothing better than knowing we've played a role in making someone else's financial life stronger. It's a privilege, and honestly, it makes us just as happy as it makes them.

Signing off

Asian equities are in the green this morning, taking their cue from Wall Street's positive close overnight. Gains were broad-based, with Australia, Japan, and Taiwan leading the charge for a second straight day. Benchmarks in mainland China, Hong Kong, Singapore, South Korea, and India also pushed higher, rounding off a strong end to the week across the region.

In local company news, Telkom jumped 13% yesterday on fresh chatter that MTN might once again be eyeing a full buyout. The market has heard this rumour before, but clearly, traders still like the sound of it.

US equity futures are healthily in the green pre-market. The Rand is trading at around R17.73 to the US Dollar.

Speaking of green, the mighty Bokke are playing the All Blacks tomorrow at Eden Park, a place they have not won at since 1937. Send all your positive vibes to our boys.