USA Share price vs Earnings

Chart of the Day

Today's chart illustrates how the recent rise in earnings has impacted the current valuation of the stock market as measured by the price to earnings ratio (PE ratio). Generally speaking, when the PE ratio is high, stocks are considered to be expensive. When the PE ratio is low, stocks are considered to be inexpensive. From 1900 into the mid-1990s, the PE ratio tended to peak in the low to mid-20s (red line) and trough somewhere around seven (green line). Notice how investors were willing to pay much more for one dollar of earnings during the dot-com boom, the dot-com bust and financial crisis. Currently, with 94% of US corporations having reported for Q4 2010, the PE ratio stands at 17 which is a relatively low level when compared to the past two decades.

With compiments to www.chartoftheday.com

Nasionale Begroting 2011

TABEL VIR PERSOONLIKE INKOMSTEBELASTING
2011/12
Belasbare inkomste (R)	Belastingkoers
0 – 150 000	18% van elke R1
150 001 – 235 000	R27 000 + 25% van die bedrag bo R150 000
235 001 – 325 000	R48 250 + 30% van die bedrag bo R235 000
325 001 – 455 000	R75 250 + 35% van die bedrag bo 325 000
455 001 – 580 000	R120 750 + 38% van die bedrag bo R455 000
580 001	R168 250 + 40% van die bedrag bo R580 000
Kortings
Primêr	R10 755
Sekondêr	R6 012
Derde korting	R2 000

Belasting op enkelbedragvoordeel uit aftreefonds by aftrede of dood

Voorgestelde koers Belasbare enkelbedrag (R)	Belastingkoers
0 – 315 000	0% van bedrag
315 001 – 630 000	R0 + 18% van bedrag bo R315 000
630 001 – 945 000	R56 700 + 27% van bedrag bo R630 000
945 001 and above	R141 750 + 36% van bedrag bo R945 000

Kapitaalwinsbelasting

Die vrystelling van kapitaalwins word vanaf 1 Maart 2011 soos volg verhoog:

• Vir individue en spesiale trusts van R17 500 tot R20 000 jaarliks
• By dood van R120 000 tot R200 000
• By verkoop van ‘n klein onderneming wanneer ‘n persoon ouer as 55 jaar is, van R750 000 tot R900 000.

Hereregte

Die drempel vir vrystelling van hereregte word verhoog van R500 000 tot R600 000. ‘n Koers van 3% is van toepassing op die waarde van R600 001 tot R1 000 000; ‘n bedrag van R12 000 plus 5% op die waarde tussen R1 miljoen en R1,5 miljoen; en ‘n bedrag van R37 000 plus 8% op bedrae oor R1,5 miljoen.  Hierdie hersiene koersstruktuur is van toepassing op eiendomme verkry kragtens koopooreenkomste gesluit op of na 23 Februarie 2011.

Hierdie koers is van toepassing op natuurlike persone, regspersone (beslote korporasies en maatskappye) en trusts.

Beleggings seminaar

The whole 3B team attend an investment forum on 16th February in Pretoria.

Company                Speaker                   Topic

Allan Gray               Duncan Artus           Investment overview

Atlantic                    Arno Lawrenz          The outlook for interest rates in 2011

Coronation               Charles de Kock       Domestic fund positioning

Allan Gray               Richard Carter          Investing for retirement

ReCm                       Piet Viljoen              Managed funds

Foord                       Bruce Ackerman      Investment themes for intenational equities

Allan Gray               Steve Watson           Eye of the storm – is the world realy fixed?

The universal theme was that South African equities are at fair value and the international equities offer better returns.

JSE All Share vs Foreign Inflows/outflows

Dit is baie interessant om te effek van die buitekandse in- uitvloeie te sien op ons beurs se prys.

Market Comment by Investec Opportunity Fund

Hi

Investec Opportunity Fonds het 'n baie interessante kommentaar oor die mark.  Lees dit gerus by = Investec Opportunity Fund

Die JSE All Share is tans op 32 762 punte  en Brent Crude Oil is meer as $100

Geniet die dag

Hier is die grafieke van paar markte se beweging oor die afgelope 1 jaar!   

     DOW                                                   


     HANG SENG

  








      DAX                                                    

     SUID-AFRIKA [JSE]

Geniet die dag.

Market review - Claude van Cuyck – SIM

WRITTEN BY: Claude van Cuyck – SIM
Market review

The last two years of equity market performance are another keen reminder that investing at the point of maximum pessimism is a long-term winning strategy. There are few who would have thought the FTSE/JSE All Share Index would have generated a return of 32.1% in 2009 and another 19% in 2010 - all of this while the world was going through the toughest global crisis since the Great Depression! Since the market index hit its low point of 17 814 in the wake of the crisis on November, 20 2008, the market (ex dividends) has gained 81%.

Let us revisit what we said to our clients at the beginning of the year and then do a short review of the past year. In the first quarter we made the following observations:

• We expected the low interest rate environment to support the consumer. This was certainly the case as household final consumption expenditure delivered four consecutive quarters of robust growth and real growth of 5.9%1 in the third quarter.

• We expected the strong rand to pose a risk to South Africa’s growth outlook. This has had a negative impact on our economy, with our manufacturing sector finding it difficult to compete. The rand/dollar exchange rate appreciated by about 6% during the year and has appreciated by more than 40% since October 2008!

• Valuation: although the market price-to-earnings (PE) ratio was 18 times its historical earnings going into the New Year, given the strong outlook for the recovery in earnings, the forward PE ratio was close to “fair value” in our opinion. Since we use a 14% required return to calculate our intrinsic values, this implied a long-term, reasonable, expected annualised return of 14%, which did actually transpire up to December 20. We believe this was a reasonable expectation. As you know, we do not forecast annual returns: rather, we focus on the long-term fair value of assets, hence this “prediction” of returns for the market was not really a forecast but rather what we could reasonably expect given our view of the long-term fair value for the market.