There is not
yet any evident reversal in the plunge of company earnings captured by the
various market indices. In most sectors, this fall has outstripped the recent decline
in prices with the result that pe ratios are at all-time highs which is an
unappealing time to buy. But inflation appears to creeping up rather quickly –
to the extent that some “real” interest rates are now negative – and usually
this is an incentive to preserve value through buying shares – particularly the
rand hedge counters. It’s never easy!
Isn’t the
internet amazing? Any document, picture, movie or data which is stored in
electronic form can be made widely available instantaneously and perhaps more
importantly largely anonymously. A week ago no one had heard about a Panamanian
law firm with the improbable name of Mossack Fonesca. But an electronic doorway in
that firm’s computer was opened a crack and to the delight of sleuths and
muck-rakers, torrents of data escaped. Soon
we all knew that the firm specialises in helping people conceal their money
from nosy voters, relatives and of course tax collectors. But the bonus was the publication of Mossack
Fonesca’s client files. Naturally this triggered an epidemic of frantic, embarrassed
and astonished denials amongst the powerful, rich and famous. Most, including a
prominent (in every sense of the word) “entrepreneurial” nephew of president JZ,
have offered a variant of the well-worn defence of “It was not me. I was not
there, I know nothing. My advisers let me down.” An early victim of the incriminating
revelations has been the prime minister of Iceland who quickly heeded his electorate’s
demands that he resign.
However, our
own Number 1 has yet to demonstrate us similar civic integrity following the judgement
delivered by the highest court in the land. He very politely thanked the court
for their efforts which he said showed that the advice he had received was
wrong and that he would be more careful next time. The party praise singers howled
with glee that this “apology” was brave and manly and have clustered around him
in a perk-protecting phalanx. Suggestions that the necessary response to the
judgement should be that Zuma spend more time with his family and none running
the country as a personal gravy-train were rejected with disdain. Barring a few
pods of dissident democrats trying to mobilise an impeachment movement, it’s
business as usual. The next hurdle for the ruling party is how to get around
the rule that everyone on the Voter’s Roll must have a verifiable address. This
is a tough call. Actually, voting in local elections ought anyway to be
restricted to only those people who are ratepayers. There is no need at all for
local government to be a political battleground. Years ago my mother (as the
registered home owner) was the only one in the household able to cast a vote
for the local ward councillor. She delighted in ignoring my father’s polling advice.
Ratepayers by definition have an address. Problem solved. A useful consequence
of this idea is that there would be great pressure on everyone to transfer land
from the state to individuals.
Following
some horrible and spectacular traffic offences committed by young overpaid professional
soccer players, the Minister of Transport has laid the blame at the door of that
sport’s governing body. Her view is that “(T)he PSL leadership…have the
responsibility … to educate soccer stars about road safety.” A startling idea
but surely one that follows only after her own department ensures that all drivers
and their vehicles meet the existing laws and standards.
Its Sharks vs
Lions this weekend and as usual I shall wear the colours of both sides. It is
however preferable to the kit being foisted on some of the Super Rugby teams at
the expense of dignity, sense and team identification. The Kings versus
Sunwolves match last week was a riot of reds. Utterly frustrating. Just like the
obviously untested new Grand Prix qualifying system (now fortunately scrapped)
which produced long periods of empty track. At least The Masters sticks to an
old formula of 72 holes of golf and a Green Jacket for the winner.
James
Greener
8th
April 2016
