US 10-year yields highest since 2007

Bad news all round (unless you buying).

Almost 40% of US government debt expires in the next four years and will be re-issued at markedly higher rates, 9x higher in some cases.

Money flowing into US bonds for yield.

• This sees less money entering the stock market
• Sees a stronger US$ (check DXY strength, all currncies weaker against US$)

Hits valuations lower as higher rates makes cash worth less in the future, but so far the market has ignored this fact.

Simon Shares

• The Top40 closed negative for the year on Tuesday. This after being almost +12% in late January and trading at all-time highs.

• Top40 close 26 September 2023, negative YTD

  Fed and SARB hold rates steady - but very hawkish.

• StatsSA "South African hotels recorded an occupancy rate of 47.3% in July 2023, up from 45.8% in June and 45.5% in May.". But still below the ±50% pre-pandemic occupancy levels.

Simon Shares

• Shoprite* (JSE code: SHP) results "2023 was extraordinary".

Chart by Koyfin 15% discount for first 2 years

• Richemont (JSE code: CFR) getting interesting, let's see if support holds.

• [caption id="attachment_40005" align="aligncenter" width="849"] Richemont weekly ~ 07Sep23[/caption]Nampak (JSE code: NPK) nil paid letters are trading, code NPKN. Remember either sell them or take up the rights.
• Calgro M3* (JSE code: CGR) trading statement, HEPS +20% for the first six months ending August.
• The latest PMIs out of Europe all quite weak, not only declining from the previous month, but lower than the preliminary numbers from the middle of last month
• Profit from the Longevity Boom with Healthcare ETFs
• The tax ABCs of buying a property

Simon Brown

* I hold ungeared positions.