The world is changing fast and to keep up you need local knowledge with global context.
Brenthurst Wealth Management founder Magnus Heystek leads Wednesday’s market insights with the investment strategist explaining his inability to promote cryptocurrencies as an asset class due to it being an unregulated market. Netflix reaching new all time highs, as a result of the popularity of Squid Game, the Korean show was discussed at length with Americans seemingly consistent at being the leaders from an innovation perspective. China, executive remuneration and Sanlam taking over Absa’s investment business round up the conversation. – Justin Rowe-Roberts
Magnus Heystek on cryptocurrencies:
First of all, I can’t do it. I can’t recommend it to my clients. It’s not a regulated product. And if it goes belly up, there goes my business, my reputation and probably my money probably. Very clearly, I cannot recommend it as a product. But I like stirring the pot a little bit. I love these reactions from these converted crypto coiners and I like the debate. I mean, where does the value lie in a crypto coin? Maybe I’m wrong. Maybe I’m missing it. Maybe it’s on the demand side. Maybe I’m missing something as opposed to an intrinsic value, so we can have a very wide ranging debate about – fiat currencies and where does value come from? And the dollar is in a decline and the pound, etc. So I like stirring these things, but I’m still yet to be convinced that a bitcoin or any cryptocurrency has intrinsic value as opposed to something like a cow that you can milk or you can slaughter.
On Netflix ability to innovate:
Well, the Netflix story is, of course, a phenomenal story. I’m actually reading the book on Netflix, and as it so happens, the Netflix chief executive in South Africa is my neighbor. We’ve had a long chat about the strategy in South Africa and he’s not American. He’s a Nigerian guy, grew up in the UK and he’s living in South Africa. I just thought their strategy was quite brilliant. What they’ve done – and it made a lot of sense – and I’ve seen many of their productions which are based in a certain country, whether it’s Iceland or Norway or even South Africa. Apart from being a great story and a great cast. It also brings in the cultural and historical aspects of many countries that pull in people from a wider range as opposed to just an American based story. So I find it fascinating. I mean, we addicts as far as Netflix is concerned.
On the signals given by the Chinese government:
We must try and fully understand it, and I don’t think we do. I read many comments on this issue from American and British commentators, they say they’re trying to decipher what the Chinese government is trying to do. The Chinese government by and large doesn’t communicate very well. Or maybe that’s their deliberate strategy. I was watching this fascinating interview from George Magnus from the China study – I think it’s at Oxford University – and that was a fascinating interview. Here’s an expert who’s been studying China for 30 to 40 years. The message that came across is, as a Westerner you’re going to battle to understand what China is trying to do because China thinks differently to the West. Their strategy is different. Their approach to life and issues is different. So you have to have to put in a Chinese thinking cap to try and understand what is happening in China.
- Commodity counters are a no go – Magnus Heystek
- The Japanese market offers value – Magnus Heystek
- Foreigners keep selling SA investments and that’s the most important indicator of sentiment – Magnus Heystek
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