This is an index developed in the summer of 1985 made up of U.S. stocks potentially most subject to South African divestiture selling pressure. It includes companies given bad Sullivan ratings and those who have not become signatories. A.D. Little released new Sullivan ratings Nov. 1 and there have been a number of changes.
Prudent investors should include gold in their long-term portfolio asset mix considerations. Most don’t, but they should. However, our intermediate term outlook for the price of gold is not all that optimistic. Nevertheless, we think the aggressive investor is currently being presented with an attractive capital gains opportunity in South African gold shares.
There have been a number of requests for more information on companies doing business with and investing in South Africa. We have spent considerable time over the past month on this investment morality play. Public pension funds are under increasing pressure, but I am coming to believe the ultimate course will be a boycott against buying offending companies, not divestiture.
South African Divestiture: The campaign against investing in companies doing business with South Africa is rapidly building momentum…TV Tulips: Recent prices paid for commercial TV properties may be tulip bulb prices… Will It Take a Crisis?: I am just about convinced that only a crisis can bring meaningful fiscal reform.