To market to market to buy a fat pig. Another good day for markets, both locally and in the US. The All Share was up 0.56 and the S&P 500 was up 1.00%, making it the strongest day for the index in over 3 weeks. One of the leading stocks in the US last night was Nvidia who were up 8%, remember they are the company producing 'shovels' in the cryptocurrency mining rush. Considering that the company is worth $100 billion, an 8% move up is no small feat.
Tomorrow Tencent report 2Q numbers, probably the most significant set of numbers for the JSE even though they don't even trade here. The numbers are out at around lunchtime. In Jozi that will set the tone for Naspers and by extension our market. I found this very interesting slide show talking about why Tencent is such an amazing business, Tencent's Wide Moat. If you don't fully understand why we think Tencent and Naspers are such great businesses this slide should help.
China might not be as rich as the US on a GDP per capita basis but they have 4 times the population who are very quickly entering the global middle class. Think disposable income to spend. With that in mind, do you think a social network with 1 billion users should be worth more in the US or in China?
"Average user spends 66 minutes a day on WeChat (more than Facebook and Instagram combined)... But a third of WeChat's users spend a whopping 4 hours a day or more on the app!"
If you are wondering how someone can spend 4 hours of their day, around 25% of their waking hours on WeChat, here is an example.
Linkfest, lap it up
One thing, from Paul
Stuart Theobald put it perfectly in yesterday's Business Day. Taxpayers and investors are pushing back against state capture in South Africa. The stakes are rising, as we approach our next electoral cycle - Money of activist investors and taxpayers finds its voice to oppose state capture
Byron's Beats
Starbucks is an incredible success story. Their unique approach to retail has been one the main reasons for their success. Everyone loves a good Buzzfeed list. Here are 17 Fascinating Facts About Starbucks That You'll Drink Right Up.
Michael's Musings
Given my economics background, seeing how countries develop fascinates me. These photos point toward the shear size of China and the natural beauty the country has to offer - 17 Drone Photographs Reveal How Urbanization Has Changed China
As wealth grows people are becoming more selective about what companies they are invested in. Capital growth is no longer the overarching goal, having your money in a company that has a positive impact on the planet is a consideration - Millennials are Investing With a Purpose, and It's Changing Wealth Management. I wonder how much Tesla has influenced the returns of the graph below?
It may not always seem like it but the world is continually improving. Remember that in 1992 there were 2 billion less people than today, so in percentage terms the number of undernourished people has dropped by more than this graph indicates - Undernourished persons
Home again, home again, jiggety-jog. Later this morning is the High court's ruling on the SARB. Will they change their inflation targeting mandate to something that focuses on the "socioeconomic well-being of the citizens"? No change is expected. Asian markets are all in the green this morning and Tencent is up another 0.3%, so expect a green ALSI on the opening bell at 9:00.
Sent to you by Team Vestact.
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