INVESTMENT ADVISORY: Purchase Sun International, reduce holdings in U.S. dollar
👨💼 Rowan Williams, the CIO at Nitrogen Fund Managers, spills the tea on smart investments
🔥 Stack those Sun International shares
Sun International is an all-round leisure and gambling powerhouse predominantly dominating the South African market. The latest figures show a whopping 60% increase in their online gambling division, SunBet, compensating for a slight dip in their land-based casino businesses. The tourist brigade keeps rolling in, creating a steady demand boom, and as the squeeze on the South African consumer lessens, tourism and gambling are expected to thrive even more. The group owns coveted leisure properties like Sun City and the Table Bay hotel, set to reopen after a makeover in December. They also recently announced the recruitment of gaming heavyweight Ulrik Bengtsson as CEO. With a modest earnings multiple and a hefty dividend yield, this baby's a steal for a well-run leisure company with a promising future.
🔚 Top Dollar, time to say goodbye
Since the end of World War 2, the dollar has operated as the world's ultimate reserve currency, but Trump's administration is shaking things up with its protectionist policies. It's not just the tariffs and their impact on global trade and capital markets, but the unpredictability of these policies that's shredding the dollar's credibility. The dollar index plummeted by over 2% following Trump's "liberation day" tariff announcement - its worst single-day loss in nearly a decade. As US equities crash and US Treasuries weaken, the days of US exceptionalism may be numbered. It's time to spread that foreign cash love to other currencies like the Japanese yen, euro, and Swiss franc. Bye-bye, greenbacks!
- Rowan Williams, the CIO at Nitrogen Fund Managers, suggests investing in Sun International, a leisure and gambling powerhouse, due to a 60% increase in their online gambling division, SunBet.
- Tourism has been steady and is expected to thrive further due to the demand from tourists and easing of the squeeze on the South African consumer.
- Sun International owns coveted leisure properties like Sun City and the Table Bay hotel, slated to reopen after a makeover in December.
- Ulrik Bengtsson, a gaming heavyweight, has recently been recruited as CEO of Sun International.
- The group's modest earnings multiple and hefty dividend yield, combined with its promising future, make it a steal for a well-run leisure company.
- The end of World War 2 marked the period when the dollar became the world's ultimate reserve currency, but Donald Trump's administration's protectionist policies are causing uncertainty.
- The impact of tariffs on global trade, capital markets, and the unpredictability of these policies are shredding the dollar's credibility.
- In light of US equities crashing and US Treasuries weakening, Rowan Williams suggests spreading investments across other currencies like the Japanese yen, euro, and Swiss franc.
