Daily Market Blog: Goodbye Elizabeth, your ship has come in

30-OCT-14

"They will do whatever it is that they need to do to stick to their mandate, worrying about it or stressing about it is a waste of effort. Effort that could be spent analysing companies, the decisions that really matter for investors. Rates go up and down, it seems Mr. Market is looking for the unknown on the timing of the first rate hike"






To market, to market to buy a fat pig. The ship has finally sailed. The end of one of the biggest experiments in monetary policy ever. This current bond buying program (Mortgage Backed Securities and Treasury Securities), referred to as QE3, Quantitative Easing (third time), had the curtain come down. Check it out, the second part: Statement Regarding Purchases of Treasury Securities and Agency Mortgage-Backed Securities. The program ends Friday, Halloween. For some, the size and scale of the Fed program was scarier than Freddy Krueger, Jason, Dracula, Frankenstein, for me it was always Pennywise from the movie adapted to the Stephen King IT. Yes, if something had to be scary, it was that darn clown Pennywise.

You can read the very short Fed statement from their website: Press Release. You can try and decipher the tone, the new words, the extended words and so on. "The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run." Only one person on the committee dissenting, Narayana Kocherlakota. Kocherlakota is amazing, the fellow went to Princeton at the age of 15, he had earned a Ph. D in Economics by the time he was 24.

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Stocks which we currently recommend

Amazon.com is the world's leading online retailer.

Apple is global leader in tablet and smartphone technology.

Aspen is a rising global star in generic pharmaceuticals.

BHP Billiton is the world's largest industrial commodity mining company.

Bidvest is a diversified services company, which may re-organise its portfolio.

Cerner provides IT solutions in the healthcare industry.

City Lodge is a growing mid-priced hotel group in urban areas of SA.

Discovery is a healthcare services administrator and life insurer.

Famous Brands is SA's largest quick-service restaurant group.

General Electric is a diversified investment holding company.

Google is the world's biggest search engine and online advertising platform.

Johnson & Johnson is the largest consumer healthcare and pharma company.

L'Oreal is a world leader in the manufacturing and sale of beauty products.

Luxottica is the world's largest branded sunglass maker and retailer.

MTN Group is an emerging markets mobile telecoms giant.

Massmart is a big-box discount retailer in Africa, now 51% owned by Wal-Mart.

Mediclinic owns hospitals in SA, the UAE and Switzerland.

Naspers is an in emerging markets company focussed on digital TV & Internet.

Nike is a global designer and retailer of sporting equipment.

Omnia is a fertiliser and explosives producer.

Richemont is a luxury brands company expanding in Asia.

Sasol is a global player in chemicals and fuels technology.

Starbucks is a roaster, marketer and retailer of coffee.

Stryker makes hip and knee joint replacements and hospital beds.

Tiger Brands is a basic and branded food producer, expanding through Africa.

Visa is a global payments technology company.

Woolworths is SA's leading organic food retailer & clothing business.

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