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.
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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.
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Thursdays are all about hard-core investing and trading with Simon Brown’s famous JSE Direct podcast. JSE Direct started life on ClassicFM in July 2008 and became a podcast in 2011. Every week Simon shares his views on the state of global economies, individual shares and events moving markets.
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JSE – The JSE is a registered trademark of the JSE Limited.
JSE Direct is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.