Could you turn down a €13 billion windfall? Ireland is looking to appeal this EU tax award relating to Apple, equivalent to 5% of its annual GDP with an eye to the long term damage it could do to its core business friendly low tax environment. Jacob Zuma has expressed some surprise at this development… Continue reading Apple Tax Award
Decades ago in the UK my father calculated that all the travel they did in retirement would be cheaper if they used taxis. Obviously there are non-financial aspects such as convenience and time but overall it did seem workable even though he never adopted it. Now with Uber it is becoming even more realistic and… Continue reading Uber Options.
As an update on this topic the five year rate has now been increased from 8.75 to 9.00%. The following chart, courtesy Sharenet, shows how muted the market reaction was to the latest developments compared to Nenegate in December, whereas the this time round the outlook is arguably worse – it has arisen despite the… Continue reading SA Retail Bonds.
Low interest rates in developed countries are becoming the new normal but pose problems. If traditional savings vehicles are offering close to zero rates for retirement monies or for pensioners then people look to more risky or volatile investments such as equities. Money going into equities keeps their prices historically high and lowers dividend yields.… Continue reading Savings, Interest Rates and Pensions.
The arbitrariness of using current exchange rates to measure the size of economies in $ is illustrated by the relative position of Nigeria and South Africa. There was much consternation when Nigeria surpassed SA as Africa’s largest economy when its GDP was rebased thanks to a strong official rate of exchange (as opposed to black… Continue reading GDP Measurement Anomolies
A well known scam as set out by The Economist. Send out 100,000 emails offering the perfect investment advice and invite recipients to entrust their funds to you if you consistently forecast the movement of a stock correctly for ten weeks. Pick a stock at random and send a buy recommendation to half and a… Continue reading Financial Scam
First published 25 April 2016 The formula in Excel is (A/B)^(1/C)-1 expressed as a percentage; where A is the current value, B is the original value, ^ is the Excel symbol for ‘to the power of’ and C the number of elapsed years. For example the following is taken from the spreadsheet for a Momentum… Continue reading Compound annual growth rate calculation