Calendar 2004 was an excellent year on the local stock market in general with the combined income and capital appreciation for the JSE All Share coming in at 25,4%. For portfolios more concentrated in financial and industrial shares, the gains were much more impressive. In a low inflation environment this compares very favourably with the average calendar gains of 18,9% over the last 44 year period, where inflation ran at an average of 8,9%. Investors were rewarded with above average growth.

At the start of 2005, I have steered away from providing a mere market analysis. The beginning of every year sees almost every ?market? commentator, financial publication, investment expert etc make predictions for the year ahead on the whole gamut of interest rates, the rand, the dollar, local market, overseas market, property etc.

What is probably more important and useful for private investors is to make an assessment of their overall investment strategy and to work on updating their long term investment plan. This then introduces the significance of obtaining investment advice and into the latter part of 2004 media attention turned the spotlight on financial advisors and brokers and the typical type of ?advice? received. For sure it was negative publicity, and in the main deserved.

This month, I provide some of my thoughts on this ongoing topical issue, distinguishing between investing and being sold an investment product and how to determine the difference.

The Market Focus newsletter then defines investing using Benjamin Graham?s timeless definition, as "An investment operation is one which, upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative."

From there I discuss Robert Kiyosaki?s 6 levels of Investor, which from range from borrowers to sophisticated investors and capitalists and then also define my specific Investment Beliefs.

For the detailed Market Focus newsletter, please click here ?

If you are looking for best advice investment counsel in 2005, I will be taking on selected high net worth clients. Contact me for a confidential discussion, or e-mail me your contact details to ian@exsequor.co.za

Posted: 2005/01/28 15:55 View Archive

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