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Please click to download:Our contact details: Tel. 021 883 8000, Fax 021 883 8005, e-mail editor pkruger@moonstoneinfo.com. To Subscribe please click here Website: www.moonstoneinfo.com
THIS WEEK'S E-MAIL From the Crow's Nest Read More Rates Review Read More Green Shoots or Brown? Read More What or who should we believe about market recovery? Latest on the NHI Read More The government has finally revealed more details on these proposals, but experts express grave concerns. Moonstone Mirth: Read More Be very careful how you phrase your requests. | ||||||||||||||||||||||||||||||||||||||||||||||||
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Winning Ways Seminar
Our annual seminar's theme is An industry of Opportunity, something which sounds like a life buoy for many advisors who are faced with a constantly changing environment. To find out more about the speakers, dates and venues, please click here. Trial Regulatory Exams As many of you know by now, we have been tasked with drawing up the questions for the first round of regulatory exams which we believe will start in April next year. An extremely important step in the process is field-testing the questions to ensure fairness. We will conduct a series of trial exams in the Western Cape, starting on 18 September. Invitations will go out this week to key individuals to invite them to participate. While the trials will obviously not contain questions that will be asked in the real exam, it will assist participants in experiencing what they need to prepare themselves for. The format is the standard multiple choice version of a question with four possible answers of which one is correct. Should you wish to make use of this opportunity, please send a mail confirming your interest to Rozanne Boonzaier. Sports Roundup The big difference between us and the Aussies on Saturday was their determination to win. This was very evident when Adam Ashleigh Cooper scored his try and ran straight into the crowd, sharing hugs. Yes, the new personnel slotted in well, but if one underestimates the pride of representing your country, and the effect of negative media reports, you do so at your peril, as the 'Boks found out. Australia has found a new George Gregan, and his impact was felt throughout their entire backline. If the worst happens, and we lose again on Saturday, I have a lot of faith in this new Wallaby team to win the Tri-nation's Cup for us. Hopefully, there will not be a need for this. En, o ja, wel gedaan WP. Mooi loop. Paul Kruger
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Quote of the Week: Self-development is a higher duty than self-sacrifice. Elizabeth Cady Stanton. | ||||||||||||||||||||||||||||||||||||||||||||||||
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RATES REVIEW 1.Secured Investment Rates: Please note that (G) indicates a Guaranteed and (L) a Linked product. In order to understand the difference between guaranteed and linked rates, kindly click here for an explanation. R100 000 Five are up, four are down and one remains the same.
R1 000 000
2. Money Market Funds: Four of the twelve funds listed this week are higher than last week.
Please bear in mind that our figures, though based on the actual quotations that you also use, are for information purposes only, and can never replace the official quotation from the product house. In terms of the guarantees, you are requested to clarify the exact extent of such guarantees with the product house prior to advising clients. | ||||||||||||||||||||||||||||||||||||||||||||||||
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GREEN SHOOTS OR BROWN?
My vines at home actually have new leaves already as a result of the false spring sprung by global warming. There is a nasty surprise in store for them though; winter is far from over although spring appears to be around the corner. This phenomenon also seems to appear in the markets. It is quite an amusing hobby watching the formulation of new phrases, and seeing how the rest of the media runs with it, almost as if it is required phraseology to show that you are on top of the subject. One such expression is “green shoots” which I suspect may have a biblical source going to back to good old Noah, but more likely something more simple like the beginning of spring for those journos whose closest biblical experience was reading the Da Vinci Code. In a recent article in Media24, David Meades made the point that no one really knows what the markets are going to do. “Are we at the bottom of a V-formation, or will this change into a U-formation? If a V is developing, is it the start of a new, reasonably long recovery, or is it simply the first part of a W that we currently experience? He quotes Dr. Angie Xie, an independent economist famous for forcasting all the bubbles in the market correctly, as warning of a potential problem in the Chinese stock exchange. Xie equates the Shangai exchange to a massive Ponzi scheme “…where expectations of more strong increases in prices and inflation is chasing the markets (up), fed by bank credit.” Please click here to read the article: http://www.ritholtz.com/blog/2009/08/andy-xie-china-has-become-a-giant-ponzi-scheme/ I must admit that reading comments from readers below the article is a fascinating experience for any amateur psychologist like me. There is no guarantee that Xie is right, or wrong. What is important is that we take cognisance of what is realistic because ultimately, our clients often rely more on our advice than that of those responsible for ensuring good returns on their investments. And blame us where the latter fails. | ||||||||||||||||||||||||||||||||||||||||||||||||
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PROPOSED NHI: AN ACCIDENT LOOKING FOR A PLACE TO HAPPEN? The proposed national health insurance (NHI) came under the spotlight at a Board of Healthcare Funders (BHF) conference at Sun City last week. Concerns were expressed by interested parties about the lack of consultation. The only document giving an inkling of what the government proposes to do was an ANC policy document published on its website. According to a report in Personal Finance, Dr Olive Shisana, head of the ANC's task team on NHI, outlined the ANC's proposals for the new health system at the BHF conference. Please click here to read the article by Laura du Preez. In a related article in Business day, concerns are expressed by two academics about the financial feasibility of the proposed scheme: “Our fear is that the proposed NHI will fail to meet the expectations of the poor, will leave medical scheme members (including the working poor) worse off, will be massively expensive or even completely fiscally unaffordable, and will require far more doctors and nurses than are available. The danger is that it could well become a highly costly failure that will further increase frustration with service delivery.” This was echoed by a spokesperson from the national treasury at the BHF conference. According to the Personal Finance article, “…Andrew Donaldson, the deputy director- general of public finance at the National Treasury, warned delegates that the economic environment does not allow for the creation of a healthcare service that is backed by a large budget. Donaldson cautioned against "fiscal illusion", saying resource constraints are real. An expanded, improved healthcare system has to be part of a growing, more productive economy. Let us pray that economic realities, managed by the likes of Trevor Manuel, will force a viable solution, rather than one where political outcomes, and not the interests of the poor, is the real goal. To continuously try and redistribute wealth without any attempt at improving the creation thereof is a recipe for disaster which has proven to be "successful" in so many other African states that we do not have to repeat it here. Closer to home, a comment from the Registrar of the Council for Medical Schemes (CMS), Patrick Matshidze, about the conduct of healthcare intermediaries have drawn strong criticism from the Financial Intermediaries Association of Southern Africa (FIA). At the launch of the CMS’ latest annual report, Matshidze stated that there is “particular concern about the presence of unscrupulous medical aid brokers who render non-value services.” Linza van Aswegen, chairperson of the FIA’s Healthcare Benefits Committee reacted as follows: “While this may hold true for the minority of healthcare intermediaries, this is not the case for the majority of financial advisors in the industry who work hard to add value and offer a meaningful service to thousands of consumers. It is unfair to make such a generalisation and one which could mislead members of the public to believe that all intermediaries are under suspicion of poor conduct.” Click here to read the full press release. Glib generalisations such as these perpetuate the negative image portrayed of us by sectors of the media. Very little, if any, credit is given to the many advisors who jumped through the hoops to get their ducks in a row in terms of becoming fit and proper, and will continue to do so. Perhaps the time has come to establish an objective platform where the public can read the truth. A website like http://www.hellopeter.com/ already enjoys considerable success in naming and shaming bad service. | ||||||||||||||||||||||||||||||||||||||||||||||||
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A woman goes to Italy to attend a 2-week company training session. Her husband drives her to the airport and wishes her a good trip. The wife answers: "Thank you honey, what would you like me to bring for you?" The husband laughs and says: "An Italian girl!" The woman smiles quietly as she leaves. Two weeks later he picks her up in the airport and asks: "So, how was the trip?" "Very good, thank you." "And, what happened to my present?" "Which present?" She asked. "The one I asked for - an Italian girl!!" "Oh, that!" she said. ,"Well, I did what I could; now we have to wait for nine months to see if it is a girl!" Moral of the story: never underestimate the female mind. | ||||||||||||||||||||||||||||||||||||||||||||||||
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