Clear market notes built around the JSE, the rand, and what matters locally.

2026-10-07 22:15 • The Motley Fool Positive Axe Cap view: Selective

The author argues that most investors misunderstand the stock market by focusing on short-term price movements rather than long-term business value. He explains Benjamin Graham's concept of the stock market as a 'voting machine' in the short term (driven by emotions) and a 'weighing machine' in the long term (reflecting true value). Taking advantage of current market pessimism, the author has doubled his position in McCormick, a well-run consumer staples company with a 4% dividend yield, believing Wall Street is undervaluing it despite solid fundamentals and a planned acquisition of Unilever's food business.

Axe note: Long-term business value beats short-term noise, and consumer staples stand out today.

2026-10-07 22:10 • The Motley Fool Positive Axe Cap view: Selective

The S&P 500 reached a new record high above 7,800, driven by AI stock momentum and overall market optimism despite concerns about high valuations and economic uncertainty. Historical data shows that timing the market matters less than consistent long-term investing—investors who bought at market peaks still achieved strong returns over 20 years, suggesting investors shouldn't worry about current valuations but should focus on quality stocks held long-term.

Axe note: The S&P 500 hits record territory on AI hype, but what does that mean for local investors?

2026-10-07 21:30 • The Motley Fool Negative Axe Cap view: Selective

The S&P 500's exceptional 21% annual returns since 2022 mirror historical peaks before major market corrections. With the CAPE ratio at 40.5 (only previously seen before the Great Depression and dot-com bubble), the article warns that the AI boom may be unsustainable. Goldman Sachs estimates hyperscalers could spend $1.4 trillion on AI capex by 2028, but this spending may never generate sufficient returns to justify the investment. The article recommends investors take profits and diversify away from AI-exposed stocks rather than timing the market.

Axe note: The recent S&P 500 surge mirrors historic market tops, urging caution on AI-driven tech stocks.