Cannon Asset Managers is a licensed asset management business based in South Africa that manages domestic assets as well as global investment portfolios. Since our formation we have successfully applied the philosophy and principles of value investing, an investment management approach that consistently has demonstrated a clear advantage over other philosophies.  Consequently, over the years Cannon Asset Managers has developed a reputation for successfully delivering portfolio results to our clients who include companies, pension funds, insurance companies, trusts, high net worth individuals and retail investors.

The year is off to a bumpy start as oil prices head to new lows with key producers showing no signs of cutting output in the face of a global supply glut. Brent hit its lowest level since 2009 this week and is down more than 50% from June, trading at $50.88 per barrel.

The fall in oil prices has delivered a late Christmas bonus for consumers as the price of 93-octane unleaded petrol dropped to its lowest level since August 2012, providing much needed relief to consumers facing a lean January. South Africa is one of the largest beneficiaries of lower oil prices as a $40 oil price could add as much as 1% to South Africa’s GDP, according to data from Oxford Economics.

Labour market conditions continue to improve in the US as jobless claims and layoffs reach a 17-year low. The backdrop of a strengthening job market could bring the Federal Reserve a step closer to raising its short-term interest rate, which it has kept near zero since December 2008.

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