Strong Retail Sales and the Two-Pot System:
- Retail sales show a positive trend, rising 3.2% in August, exceeding expectations of 2.1%.
- The Two-Pot System has already released R20 billion in six weeks, with the money used mainly for paying down debt, saving, and spending.
- Retail sales recovery, though from a low base, is a strong indicator of improved consumer health due to factors like slightly lower interest rates and inflation.
South African retail sales | YonY
Tribute to Tito Mboweni:
- Simon reflects on the passing of Tito Mboweni, former Finance Minister and Reserve Bank Governor.
- Mboweni's contributions include institutionalising the Reserve Bank's MPC meetings and implementing key labor reforms during his tenure as Labor Minister.
- His lasting impact on the country's economy and financial sectors was highlighted, along with his personality as a Twitter chef and self-styled "Duke of Magoebaskloof."
Johnson & Johnson – A Smooth Dividend Play:
- Simon shares his reasons for holding Johnson & Johnson: consistent dividend growth (around 3% yield) and a steady 8% annual share price growth in US dollars.
- Despite some issues, the company offers reliable long-term returns in a competitive health and consumer space.
Johnson & Johnson quarterly dividend payments
Bytes Technology Group and Investment Opportunity:
- Bytes operates in the UK, offering hardware, software, and services. The stock showed mixed market reactions but has strong support around certain levels.
- With a forward P/E of 20 and a dividend yield of 3.6%, Simon sees it as an interesting opportunity for long-term investors in the tech space.
Quilter Trading Update:
- Quilter's strong Q3 results follow a good first half of the year, with significant inflows supporting future earnings.
- A solid financial services player with a dividend yield near 4% and a forward P/E of 15, Quilter is performing well and trading at all-time highs since its 2018 listing.
Sasol – A Weak Chart:
- Simon discusses Sasol's ongoing struggles, with a weak chart suggesting possible further declines.
- Investors should wait for technical indicators before making any moves.
Brent Oil Price and Rand Volatility:
- Brent crude oil hit highs recently but is now retreating to $70 per barrel, with potential for further declines due to global oversupply.
- The rand, affected by dollar strength, is volatile but could see a return to 16.80 against the dollar in the coming months.
Chapters
00:00 Retail Sales Recovery and Economic Outlook
04:29 Tribute to Tito Mboweni
08:32 Johnson & Johnson: A Steady Investment
09:52 Bytes Technology Group: Market Reactions
12:32 Quilter's Strong Performance
14:29 Cecil's Ongoing Struggles
15:56 Brent Oil Prices and Global Economy
17:48 Volatility of the Rand and Market Predictions
Simon Brown
* I hold ungeared positions.
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South African retail sales | YonY
Johnson & Johnson quarterly dividend payments