Latest / Strictly Business / The 5 o' Clock Shadow with Schalk Louw

Transcript

The 5 o' Clock Shadow with Schalk Louw · Strictly Business

0:00
You're listening to Strictly Business Podcast with Lindsay Williams.
0:05
The JSC has closed its doors for another day, so it's time for the 5 o'clock
0:08
shadow.
0:08
And as always on a Wednesday, I speak to Skullclo, Portfolio Manager at PSG Wealth
0:15
Old Oak in Cape Town.
0:17
You were talking to me about oaks a moment ago.
0:17
Well, not specifically oaks, but trees that have been ripped up from your garden,
0:21
Skullclo.
0:23
And I've just spoken to someone from Cape Town and she didn't mention anything about
0:25
storms.
0:27
How bad has it been?
0:29
I wish I could stay where she was staying.
0:31
No, I think she just thinks she forgot.
0:33
I mean, like I said, for the 50-odd years I've been on Mother Earth,
0:39
and most of that staying in Cape Town itself, this was the craziest storm.
0:45
When I say this, I mean, luckily it's now three days ago.
0:49
So Monday's storm was the craziest storm that I've ever experienced in Cape Town.
0:55
Schools were closed for two days.
0:56
So I said, I don't know if you're...
0:59
The person you interviewed actually got kids in school.
1:01
I had kids in school, but I mean, it definitely would have affected them.
1:05
It's just crazy.
1:05
I'm not going to go into people that don't want to, you know, listen to tune into
1:11
this podcast to hear me rant about, you know,
1:13
gusting winds and rain.
1:15
But I mean, just to, just to sum it up, I mean, there's, there's towns currently as
1:21
we sit here, that's totally cut off from,
1:23
from, from everybody.
1:25
I mean, I'm not looking at Worcester. There's no roads in or out Worcester.
1:28
And Robertson is just one big dam.
1:32
That's amazing.
1:33
I must look it up, Scott.
1:34
Can I look it up rather?
1:37
I should keep it more in touch with my old stomping ground.
1:40
Now, speaking of stomping grounds, we've got to have a look at the markets.
1:42
And I want to start with the oil this week.
1:44
We never normally do that.
1:46
We bring it into the conversation.
1:48
We know it's important because when it goes up, it's bad.
1:50
When it comes down, it's good for South Africa, not good for Cecil.
1:55
We know the ins and outs.
1:56
But you probably know a lot more than I do.
1:58
And I was just thinking about
1:59
Trump as he finished his McDonald's and got off the plane in Beijing to go to his
2:06
hotel for two days of hopefully negotiating with President Xi.
2:12
Now, I thought about oil.
2:14
Now, if they buy China that is buys most of Iran's oil production, I don't know how
2:21
they get it there at the moment,
2:23
but that's for another matter, another time rather.
2:24
Trump's going to say, now, look here, I'll give you this if you stop buying their
2:28
oil.
2:28
I mean, that would be the obvious thing to do.
2:31
If that happens, Scott, then where does the Iranian oil go?
2:35
Is it just marginalized?
2:37
Is it isolated?
2:38
Does it get taken out of the system?
2:40
Does it go elsewhere at a discount to other people?
2:43
Or are sanctions working nicely enough that that doesn't happen?
2:47
And if China doesn't buy it from Iran, this is me speculating, of course, then
2:53
does Trump say...
2:55
Why not come down to Louisiana and buy it from there?
2:56
And the ships start going from China to America, buying American oil.
3:01
And therefore, we get an ever bigger bull market in oil.
3:05
This is the way my mind's been working pre this podcast.
3:10
Silence.
3:12
Where do I start?
3:13
Yeah, where do I start?
3:14
I sort of realized I don't have a pen or paper to jot down all the questions you
3:19
just mentioned.
3:21
So let's start with the first one and the most obvious one.
3:24
If
3:25
Trump managed to convince him that they should in totality stop buying their oil
3:32
from Iran.
3:33
Or reduce it at least, yeah.
3:36
Well, my screen, and this is something I don't need to write down,
3:40
is still flickering that the Brent oil price is trading at $107 per barrel.
3:46
So I can tell you without guessing that Iran's oil will still go somewhere.
3:53
People are in desperate need of oil,
3:56
and it's the fact that the oil price is still trading way above $100 per barrel.
4:03
So I've got no doubt that you'll have
4:07
Pakistan and all these neighboring countries that will buy it,
4:11
and ultimately it will get shipped to other countries, and most probably South
4:16
Africa as well,
4:18
because we need that to come down.
4:20
And yes.
4:22
I think it's going to be an interesting conversation for Trump because we saw the
4:28
CPI figures came out yesterday.
4:30
You know that graph that I usually do where I look at the CPI or let's call it
4:37
the inflation year-on-year for
4:39
the US.
4:41
I compare it for that latter part, that stagflation era in the late 70s, beginning
4:45
80s.
4:47
Yes.
4:49
It's, when you look at that, and it's been,
4:50
I've been running that graph for about two years or a little bit more than two years.
4:55
And we've already had that first spike, we know that, let's go two years ago, we had
5:02
that first spike in the inflation data,
5:04
came off very, very nicely since then.
5:06
I kept on saying, watch out for that second leg.
5:08
Remember then...
5:10
We've been saying that for two or three years now, and I egg you on, of course,
5:13
because a little bit of stagflation is great for podcasts, but it hasn't come
5:18
yet.
5:18
But I tell you what, with today's PPI coming in at 1.4% from 0.5%
5:25
in the United States of America, that's three times what it was the previous month
5:29
nearly.
5:30
That's a big move.
5:32
One of the highest levels for PPI year on year.
5:35
And I think it was that we were… we came out of it,
5:41
that was the only time it was higher.
5:43
So this will be one of the highest PPI levels that we've seen in four or five
5:48
years.
5:48
So, yeah, I'll still stick to it.
5:52
I mean, inflation is a very, very dangerous thing for the U.S.
5:58
for many, many reasons.
5:59
I mean, you're looking at credit card or personal credit card debt way above the
6:06
trillion dollar mark now already.
6:08
The typical U.S. citizen, like most citizens across the globe,
6:18
they don't like this because they're going to not pay less for the debt.
6:24
And when they go to the gas station… They're using their credit card for
6:28
essentials.
6:30
I mean, that has been a theme during tough times in the past.
6:32
But this time people are going to the petrol station, the gas station, and
6:37
buying their petrol or gas with...
6:39
With the credit card, and that's really dangerous, especially, as you quite
6:44
rightly say, with the bonds are ticking up.
6:46
I mean, look at the U.S. 10-year.
6:47
That was 399 a couple of months ago, 3.99%.
6:51
Now 450 almost, 450.
6:53
That's a really big move, Skulk.
6:55
And it's been my theme of 2026, as you know.
6:59
And now it's really gathering momentum.
7:01
So people are suffering in the States.
7:03
And I hated what Trump said yesterday, but I'm not going to mention it.
7:08
We're on bigger stuff now.
7:10
What do you think is going to happen?
7:12
Is it going to continue?
7:14
What?
7:15
Inflationary trend.
7:17
Yes.
7:17
Yes, for sure.
7:18
I've got no doubt.
7:19
Because this is remember,
7:23
what we know is while the oil price is trading higher,
7:29
the gas prices in the U.S.
7:31
and petrol prices and diesel prices locally is going to stay higher.
7:36
Let's kick it up even higher.
7:38
And remember, inflation is a thing that we compare month on month and most
7:45
specifically year on
7:47
year.
7:49
And we know for a fact that last year,
7:51
the oil price and specifically the gas price were trading way lower.
7:54
So inflation is going to kick up every single month.
7:57
We're going to see these similar trends that we've seen yesterday where there's,
8:04
oh, this is quite a surprise.
8:06
It didn't come out at 3.6% or 3.7%.
8:08
It came out at 3.8%.
8:09
Next month, it will probably go over the 4%, and we know that's going to be very,
8:14
very bad.
8:14
And here's a very, very interesting statistic and why this is so important.
8:19
And I don't want to be calling stagflation again, but we're heading in that
8:24
direction.
8:25
68%.
8:26
Now, what that is,
8:28
is that's the percentage of personal consumption expenditure.
8:35
within the US GDP.
8:38
Basically telling us that
8:41
68% of the US GDP is driven by personal consumption,
8:47
by people going to Walmart and buying.
8:52
People, like you mentioned, going to the gas station and filling up their federal
8:57
tax.
8:58
How are they doing it these days?
8:59
Well, they still clearly continue doing it because they're...
9:04
GDP is not in a recession yet.
9:06
So you're right.
9:07
There you go.
9:08
And rather than using cash they have or a debit card, they typically use a credit
9:14
card.
9:14
That's what the credit card, the personal credit card figures are telling us, way
9:20
over a trillion dollars.
9:22
This is worrying.
9:24
And, yes, maybe they can still keep it afloat for a while.
9:27
But remember, if we're going to start seeing pressure on interest rates,
9:32
going upwards.
9:35
I want to see how that 68% will be able to keep the US
9:40
GDP in positive territory.
9:43
I don't think they'll be able to do it.
9:45
So, yes, I do think there's going to be a lot of pressure on the U.S.
9:50
GDP.
9:52
And I don't foresee inflation coming down anytime soon.
9:56
Hence, Trump's visit now to China.
9:58
He needs, you know.
9:59
He needs something and he's trying to get something.
10:02
And one of the things he's trying to get is apart from the Nobel Peace Prize by
10:07
disarming Iran.
10:09
I mean, he's still going for that.
10:11
I mean, this is what infuriated me yesterday when he was.
10:12
talking live as he was getting on Marine One, I think, to go somewhere.
10:17
He said, the reporter said, Mr.
10:19
President, to what extent are Americans' financial situations motivating you to
10:25
make a deal?
10:27
Trump answered, not even a little bit.
10:28
The only thing that matters when I'm talking about Iran, they can't have a
10:33
nuclear weapon.
10:35
I don't think about Americans' financial situation.
10:37
And I'll read that to you again.
10:38
I don't think about Americans' financial situation.
10:42
I don't think about anybody.
10:44
I think about one thing.
10:45
We cannot let Iran have a nuclear weapon.
10:49
That's all.
10:50
So what he's just said is stuff Americans, stuff the 77 million that voted for me,
10:57
whoever it was,
10:59
who stuffed the people that put me twice into the White House.
11:02
And everything I promised you was a complete lie.
11:06
Don't you think that's callous, Skulk, without getting too political, which I
11:10
have done already?
11:12
Yeah, we're there yet.
11:14
Beyond that, too late now.
11:16
Yeah, I agree.
11:19
I agree.
11:20
There was a poll also recently that I saw on there where they
11:26
actually, the poll was if you could go back now to the voting stations,
11:32
will you still vote for Trump and his supporters?
11:38
dwindled.
11:39
It's not looking good anymore.
11:40
And one could maybe argue that most of the people that completed the polls may
11:47
be some blue people.
11:50
But I mean you get the feeling he's under pressure.
11:53
And what's it?
11:54
November.
11:55
November they're going to the interim elections.
11:59
That's going to be an interesting one.
12:01
Well it's going to be interesting because he's already trying to rig it.
12:03
But again we're getting too political.
12:05
A couple of other things.
12:07
One in particular caught my eye, which is on CNN.
12:10
He said now real wage growth across the United States of America is now negative
12:16
for the first time.
12:18
And I can't remember the time period.
12:20
In other words, wages aren't going up as much as the 3.8% CPI print that we saw
12:25
just a couple of days ago.
12:27
Yesterday, in fact.
12:29
And remember, we're going back to that credit card debt again.
12:32
I mean, that credit card debt did not.
12:36
It did not come down yet.
12:37
It's increasing.
12:39
So it's telling us the typical American is not earning anything more.
12:45
They're paying 3.8% more for their goods.
12:49
Plus, their debt.
12:52
Their debt has increased.
12:53
So, yeah,
12:56
my very easy and simple math tells me the typical American is way worse off than
13:03
what they
13:05
were.
13:07
a few months ago.
13:09
What about South Africans?
13:11
Are they worse off than they were a few months ago?
13:13
Because the Fashini numbers were horrible, Skulk.
13:15
No, no, no, that's a case in point.
13:15
Remember, that data is still a few months old.
13:20
So we're not reflecting what we're currently seeing because remember this
13:27
month we've seen another massive petrol price pass
13:29
out.
13:31
Last month we've seen a big one.
13:33
So just a short answer to your question, yes, South Africans are off.
13:35
feeding this geopolitical tension between the US, Iran, Israel.
13:41
It needs to stop now.
13:42
Really, it needs to stop.
13:44
Yeah.
13:46
The deep value investors are going to have to dig really,
13:49
really deep when they look at certain South African stocks because they've been
13:55
cheap.
13:56
They've been cheap for a long time.
13:57
They're getting cheaper, though.
13:58
I mean, look at SPAR, for example.
14:00
I'm focusing specifically on retailers because in David Shapiro's Crystal
14:06
Challenge,
14:08
I've got quite a few retailers in my portfolio.
14:10
I fell for that one.
14:12
I'm getting closer every time.
14:14
Podcast, I'm getting closer because just for the listeners that are listening about
14:21
Lindsay's call,
14:23
he hasn't told anyone.
14:24
He hasn't told anyone what his picks were.
14:27
I'll tell you what I did.
14:29
I'll come clean.
14:32
I put in the simple question to my little AI friend.
14:37
I said, what were the worst performing stocks on the JSC?
14:42
in 2025 and it came up with dum-de-dum-de-dum.
14:45
And I said, okay, I'll take four of those and then I'll add copper.
14:49
And you didn't choose Sassel.
14:50
You didn't choose Sassel, right?
14:52
No, I didn't choose Sassel, clever clogs.
14:54
But I thought, I tell you what,
14:56
I thought copper's going to be the really big news story of 2026.
15:03
And after oil it is because it's been consistently going to all-time record
15:08
highs.
15:10
It's been the best performing commodity.
15:11
of 2026 just look at it ticking higher all the time so i thought i'll get copper 360
15:18
in my portfolio as well i
15:20
don't know what that's done but i was just as a dog with fleas as well so on that
15:25
point i think it's important to note that
15:27
uh yes uh copper is now trading at all-time highs i mean this has been a been
15:32
a great move um
15:34
and and naturally that is how just i mean you're talking about companies that are
15:38
struggling.
15:38
Cheney Groups, and I don't foresee these retailers doing better anytime soon.
15:44
I don't want to sound like an absolute bear on these companies,
15:47
but as we've seen positivity a year and a half ago when we talked about the two-pot
15:53
system
15:55
and possible injections there that could help these retailers, we're sitting now in
16:01
an environment where I think the
16:03
Esser Reserve Bank has made it blatantly clear.
16:04
If things remain unchanged, we're going to see rate hikes.
16:08
over the next two meetings.
16:10
And that's definitely going to have a really negative effect on some of these
16:14
retailers.
16:14
Yes, a lot of people will highlight now that a lot of it's priced in already.
16:21
But I mean, I think if inflation stays higher or go even higher,
16:27
then don't be surprised if we see more rate hikes.
16:31
So I wouldn't be rushing in to buy some of these, as you mentioned, value companies
16:37
because
16:39
I think I'd like to have a little bit more certainty that things are moving in the
16:42
right direction.
16:43
That said, a few companies that's really standing out, Anglo-American, Bulletin.
16:47
I mean, these are companies that made it clear for the past few years that they're
16:53
getting rid of the other type of...
16:55
And yes, one can argue that Anglo-Americans timing on getting rid of
17:01
Valterra back in the
17:03
days, Anglo-American platinum or Amplats.
17:04
It was crazy.
17:05
It was shocking.
17:06
I mean, because they pretty much got rid of it at the bottom of the platinum,
17:13
palladium price levels.
17:15
But that said, I mean, the focus area, why they did that, Billiton, same story.
17:20
They are now focused on copper.
17:23
And I've often said it, people talking about, I feel I missed the boat,
17:30
you know, the AI boat.
17:34
where can I look at possible entries?
17:37
And I said, well, I don't think it'll be your usual suspects.
17:40
It won't be your semiconductors.
17:42
I think it'll be the secondaries.
17:43
I think it's these type of companies because for you to have these chips, to
17:50
have these,
17:52
what's called semiconductors, these GPUs and RAMs and hard drives,
17:57
those kind of things, you need quite a bit of...
18:01
bit of resources the likes of the coppers the silicones those kind of things those
18:08
are the companies which you should be focusing on now because they are scarce
18:10
and they're going to benefit out of this uh i i i boom even further very good i
18:15
don't know if copper 360
18:17
is in is in a good place to take advantage of this but uh i certainly hope so now
18:22
scalp let me get on to some numbers then you can
18:24
tell me of any companies that have been featured on the stock exchange service
18:28
recently, not much today, but.
18:30
I've already mentioned Fashini Group.
18:31
Just get another one for us since we last spoke.
18:35
Meanwhile, dollar round is 16.43.
18:38
British pound against the round is 22.20.
18:40
Euro round is, where's that gone?
18:42
19.23.
18:43
Euro dollar 1.17.40.
18:46
The gold price, 46.88, which is down half a percent or $25 per ounce.
18:54
The white metals now.
18:56
Nice day for platinum, up 3.3%, up $71 to $21.90.
19:02
And palladium, 2.6% to the good, $15.29 per ounce.
19:07
Now, the all-important oil price.
19:10
And we say, OK, it's not doing much today.
19:12
It's down half a percent.
19:13
But down half a percent, it's still $107.21 per barrel.
19:18
This is the new normal.
19:21
If it goes below $100, then we'll say, that's it.
19:23
It's all over.
19:24
But it's still 80% higher than it was in September, October.
19:31
West Texas crude, 102.72, up half a percent.
19:34
They close at different times, so that's why there's a slight difference in their
19:40
performances.
19:42
Also, it could be that West Texas crude is going to be the recipient of Chinese
19:44
buying,
19:46
which I speculated on wildly when I was chatting to Scott right at the beginning
19:49
of this.
19:49
The South African 10-year bond yield.
19:51
I want to start with that one today.
19:53
And as I say that, it doesn't come up.
19:55
So I'm going to go straight to the S&P 500 futures.
19:58
Up very slightly, 7,437 for the June futures, soon to be spot.
20:04
And the U.S.
20:05
10-year Treasury bond yield is now just below 4.49%,
20:10
4.488 to be precise.
20:14
A bear market in bonds, yields going higher.
20:17
And the U.S.
20:18
30-year consolidating.
20:20
nicely above 5% if you like that sort of thing.
20:23
The South African 10-year, I think it was 8.72%.
20:28
I didn't give you copper, but it's up another 2% today,
20:32
just below $6.62 per pound.
20:35
And I don't know what that is on the LME.
20:37
It must be 13,500 per tonne, I think it is.
20:43
I must get that on my screen for next week's skulk.
20:47
And that's what I...
20:48
That's what I got.
20:49
Oh, Bitcoin.
20:49
I forgot about that thing.
20:51
Stubbornly high.
20:53
Still above 80,000.
20:55
What have you seen since we last spoke on the JSC, please?
20:58
Corporate-wise.
20:59
Yeah.
21:00
I think we need to touch on most probably the biggest one today is Tencent's report.
21:05
Yeah.
21:07
Because that's got a massive, massive effect on, I would say, one of our largest
21:13
drivers,
21:15
namely process and mass batch.
21:15
And just for the listeners out there, this is...
21:18
This is just crazy levels.
21:20
When you look at process, currently still trading at around about the 37%
21:27
discount to its NAV and was it NASPASH, close to 45%.
21:34
These two companies, and even after, not a bad day, but I mean,
21:39
these two companies process now year to date down of
21:43
25%, lost a quarter of its value in 2026.
21:48
And NASPA is down close to 21%.
21:51
They must be tearing their hair out watching the other companies doing so
21:56
well,
21:57
obviously in a completely different field.
21:59
But seeing these big discounts to NAV and at the same time the share price going
22:05
down,
22:07
how many times have they tried to close the discount, Skunk, with absolutely no
22:12
joy whatsoever?
22:14
Well, I think the fact that we...
22:17
Talking about a company called Process is telling you most probably the biggest try
22:23
they had to close the discount.
22:25
Because if you turn the clock back six or seven years ago, there was only a NASPERS.
22:28
And today there is a process to help closing down the discount.
22:32
But let's park that.
22:34
Because I think that the bigger problem is not these lately.
22:39
It's not really the process or the NASPERS, but more the...
22:44
the 10 cent part, or more specifically, the Chinese part.
22:47
Very interesting graph.
22:48
You can actually go to any graph,
22:55
tradingview or investor.com and go and just look at a typical Chinese
23:02
ETF company.
23:03
There's also one that's got your Chinese internet companies where you put it
23:10
against the US counterpart.
23:12
Or just very simple.
23:13
Just go and take the MSCI China ETF. You take the MSCI South Africa,
23:19
just because I love it.
23:21
And you take the MSCI emerging market countries.
23:24
See how China has lagged this past six months.
23:28
It is crazy.
23:30
And yes, there is some good reason.
23:35
There is a bit of a slowdown in China when there's a big worry about how this oil...
23:42
wars are going to affect China. That said,
23:46
there gets a point where you need to have a look.
23:50
I mean, today, I think there's a there's a
23:54
sort of a better outlook now.
23:58
Tencent reported earlier today, what's it, revenue.
24:03
Struggling with getting the data in my head here today.
24:07
Revenue was fairly flat.
24:09
Slightly slight miss, but profits.
24:12
I mean, the profits came out.
24:14
It was a massive, massive beat.
24:16
When you look at the year-on-year cash flow, I mean, it's something like 20%
24:23
improvement in the cash flow year-on-year.
24:25
Alibaba, same story.
24:25
Don't look at the EPS because what they've done is they didn't
24:32
capitalize.
24:33
I spent, they used this expense.
24:36
So the earnings per share looks very weak.
24:39
But when you look at the actual profits, it was really a massive, massive beat.
24:44
Revenue also up.
24:45
That's Alibaba.
24:46
And you can see that the share price reacted quite, quite positively
24:51
afterwards.
24:53
I think Alibaba, as we sit here.
24:55
today on the new york stock exchange up over six percent today ten cents same
25:00
story naspa's this morning one stage which we're
25:02
trading negative and uh yeah end of the day up close to four percent for today so
25:07
a long-winded way
25:09
of saying i
25:11
i do think there's at least let's call it 21 down year to date and 25 down
25:16
yesterday on process i do think there's some some opportunity there And maybe this
25:21
whole visit to China.
25:23
Could just be a bit of a turnaround.
25:24
Good.
25:25
Now, you've mentioned the performance of NASPES.
25:28
It is in the top five, my top five on the JSC today.
25:31
But I've got top of the heap.
25:32
Northam's up 6.1%.
25:34
South32 up 4.2%.
25:36
BHP up 4.1%.
25:37
Valterra gained by just under 4%.
25:41
NASPES up three and two thirds.
25:42
On the downside, Pan African down nearly 4%.
25:46
Sun International down three and a half.
25:48
Redefine down three and a half.
25:49
And Telcom down three and a third.
25:51
you're going to tell me at least one of those is ex-div, aren't you?
25:55
Let me quickly have a look.
25:57
I must admit I haven't seen it, but let's quickly have a look here.
26:02
You normally put me in my place, so I wouldn't be surprised.
26:04
I know, I know.
26:05
Today you caught me off guard.
26:08
I can't see any of them.
26:09
Okay, in that case, they're genuine copper-bottomed losers on the JSC today.
26:14
Anything outside of those top five and bottom five that I've mentioned?
26:18
No, nothing.
26:19
Nothing was a, I think the biggest move today was NASDAQ, so it can report back.
26:23
So no, nothing else.
26:25
Okay, so what we've got at the moment, just to summarize here, is an American
26:31
market that consistently goes to new highs.
26:33
It hasn't got great long legs.
26:33
It's just chipping away because there are two opposing forces.
26:36
You've got oil price, inflation, rising bond yields, high interest rates,
26:42
potential future negative impact on GDP growth, potential stagflation.
26:47
You've got that.
26:48
And yet, on the other hand, you've got fantastic earnings coming out of S&P 500
26:53
companies.
26:55
Who's going to win in the end, Skalk, very briefly?
26:58
Not the consumer.
26:59
Not the consumer, unfortunately.
27:03
While you were reading this, I just found myself in a very strange place.
27:08
Because if I mentioned to you in December, in our last show, December,
27:14
and I told you in six months' time, Lindsay, we're going to sit here.
27:18
We're going to see something that feels like it's heading towards a third world
27:23
war.
27:24
We will double up in petrol price, diesel price, gas prices.
27:30
The oil price will be up over 80%.
27:34
You know this interest rate cuts we're talking about currently for 2026, not
27:41
going to happen.
27:43
In actual fact, I see your cuts and I raise it with even hikes.
27:46
Not one, but might be two or three hours.
27:50
And if I told you in the same breath, in the same sentence, well, but, but, don't
27:56
worry.
27:57
The S&P 500 will be trading at new all-time highs.
28:00
Don't worry.
28:01
It'll be fine.
28:02
It's just do not add up.
28:03
It's not beyond the realms of possibility, but at some stage something has got to
28:07
give.
28:07
Are we getting to the giving point quite soon?
28:10
Or are these companies that are driving the S&P?
28:15
Recession-proof, stagflation-proof.
28:17
Maybe they are, Scott.
28:18
Maybe there is a different world.
28:21
We go through a little curtain and there's this incredible world that exists that
28:28
doesn't touch normal people.
28:30
And I consider you to be normal, despite what some people say about you behind your
28:33
back.
28:34
But anyway, you know what I mean?
28:36
It's really weird.
28:38
And be careful because in 2000, when the NASDAQ crashed because of the dot-com
28:44
bubble bursting,
28:46
It was a very, very narrow market.
28:46
We've got exactly the same thing.
28:47
Differences this time, the companies that are the narrow,
28:51
driving the narrow bull market are making pots and pots of cash.
28:56
Skullclaw is a portfolio manager at PSG Wealth Old Oak in Cape Town, and that was
29:01
the five o'clock shadow.
29:03
The views and opinions expressed in these podcasts are those of Lindsay Williams and
29:08
various contributors and do not reflect the policy,
29:10
position, or opinion of any other agency, organisation, employer,
29:13
or company associated with StrictlyBusinessPodcast.com.
29:18
Assumptions made on the analyses are not reflective of the position of any other
29:25
entity other than the speaker or the author.
29:27
And since we are critically thinking human beings, these views are always subject to
29:31
change, revision,
29:33
and rethinking at any time.
29:33
Please do not hold us to them in perpetuity.