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News & Insights

Below is a collection of the latest news & insights published either by the team here at New Road Capital or alternatively issued by one of our various partner fund managers whose offerings form part of our solutions.

Our Two Cents: Are US Equities Really Expensive?

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US equities have had a great 2023 so far, but are these returns out of line with historic trends? In this article we explore the economic backdrop of the S&P 500 to see if it could be overvalued.
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August – Wrap Up

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August was quite a risk-off month for markets both locally and globally, there was selling pressure across the board after the great returns seen during July. The All Share, developed market equities and emerging market equities were all down for the month. This does however make the All Share look particularly attractive on a valuation basis.
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Our Two Cents: The Subtleties of Investment Risk Measures

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There are many subtleties to measuring and understanding investment risk holistically. This article explores this concept and highlights some useful measures.
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July – Wrap Up

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As can be seen in New Road Capital's monthly report. July was another positive month all-round for markets. Returns were positive for both local and global equitues. The Rand strengthend and we saw local inflation decrease to within the SARB's target range.
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Our Two Cents: Grouping Bets

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In this article we explore the Pareto Principle in the context of investing and the effects it may have on the return outcome a portfolio of equities.
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Our Two Cents: Growth and Valuation

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In this article we compare the idea of value investing to long term earnings growth and find that PE values should not be the only factor to consider.
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June – Wrap Up

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New Road Capital's monthly report highlights that June was a positive month all-round for markets. Equities both locally and globally saw positive returns, there was significant strengthening of the Rand and local bonds had a notable rally.
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Our Two Cents: Inflation, Emotions and Stocks

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Inflation has been weighing on everyone’s minds recently. This coupled with the higher volatility of assets may lead some investors to move to cash. This article shows how enduring this volatility is simply the price to pay to receive the long term benefits of the assets including the eventual protection against inflation offered by stocks.
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Our Two Cents: The Interest Rate Cycle and Income Funds

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This article focuses on the New Road BCI Income Fund of Funds to explain the importance of longer duration instruments in income portfolios. A longer duration portfolio will benefit more from decreases in interest rates. This article also illustrates an asymmetry that forms such that the benefit of decreasing rates is larger than the effect of an equivalent increase in interest rates.
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May – Wrap Up

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New Road Capital's monthly report highlights the positive surprises of the US earning season along with our outlook on the local and global equity markets.
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Our Two Cents: Optimising Diversification

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Diversification is the most widely used tool for portfolio risk reduction. In this article we explore an alternative to mean-variance optimisation which may be more useful for the investor.
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Our Two Cents: Recession Fears and Earnings

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Global fears around the possibility of recession have been prevalent since the start of 2023. After the first earnings season of the year has passed in the US, we look at how companies have fared despite expectations of economic headwinds.
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