AM | Webcast with 1nvest First in a series covering protecting your portfolio and navigating scams, with social media red flags guidance from Lungeli at 1nvest, plus a conversation with 1nvest's compliance officer on what financial advice looks like (and what it doesn't). Future webcasts will cover emerging markets vs tech vs developed markets, income investing, and commodities. 👉 More info and booking at **JustOneLap.com/events** 💻 SaaS Stocks Under Pressure: Is Vibe Coding Really the Threat? Software-as-a-service stocks have been hammered on fears that "vibe coding" (using AI tools to build software) could replace platforms like Salesforce. Simon is sceptical — replacing the software is perhaps 10% of the challenge. The real difficulty is retraining tens of thousands of staff, migrating data without losses, and managing a massive transition process. Goldman Sachs' SOHO Index shows capital-heavy stocks (manufacturers, farmers) up nearly 40% since June 2025, while capital-light stocks (Microsoft, NVIDIA, Alphabet) have been largely flat — a notable divergence. IBM dropped ~10% on news that Anthropic's Claude Code can convert COBOL to modern languages, but Simon remains cautious about overhyping AI capabilities. He's currently reviewing a 20-page AI-generated SaaS research report from Claude Opus 4.6 and will report back next week. 💰 Budget 2026 Preview What to expect: Fiscal drag relief is likely, funded by extra revenue from precious metals booms (higher corporate tax and dividend tax from gold and PGM miners) and SARS's clampdown on arrears (~R20 billion recovered). Tax-free savings annual limit could increase from R36,000 — possibly to R40,000 or even R60,000 (per Nireena Fissa of ETFSA, since 60,000 divides neatly by 12). This costs Treasury very little in the short term since the big capital gains tax hit is years away. Reg 28 changes: Unlikely — these would cost Treasury money immediately. Capital gains exclusion (R40,000): Unlikely to change despite being unchanged for over a decade — another stealth tax. Interest exemptions: No changes expected. Simon's tax tip: He's been selling down long-held ETF positions (originally ITRIX, now Cygnia World) to use the R40,000 annual CGT exclusion, then reinvesting into a different ETF with a better total expense ratio. Important: don't sell and rebuy the same instrument immediately — SARS treats that as "washing." Overall expectation: A boring budget, which is exactly what markets want. 📊 Commodities Check-In Palladium 🔩 Broke through $1,100 and $1,200 early last year, pulled back to $1,350 late in 2025, now consolidating around $1,617–$1,700. Support sits at the $1,650–$1,700 level. Not going to the moon, but holding at higher levels — which is what matters. Platinum 🪙 Broke $1,000 in June, then $1,250 in July. Has since consolidated around the $2,000–$2,150 range, well off the $2,800 high but maintaining higher support levels. Results from Sibanye-Stillwater, Impala Platinum, and Northam confirm the improved earnings picture. Gold  Currently at $5,153 and running hard. Simon admits gold has proved him wrong — after January's volatile drop of nearly $1,000 from the $5,600 high to the Monday low, he expected consolidation around $4,500 or even $4,000. Instead, gold consolidated around $5,000 and has resumed its rally. His advice for those who feel they've "missed" the run: scale in gradually, buying a third at current prices and adding on dips or at intervals. Brent Crude Oil  Had been under pressure until the US detained the president of Venezuela (heavy, sour crude — less critical but still impactful). Oil briefly dipped below $60 but has since recovered. The $70–$71.50 level is important resistance; a break above targets $80 and then mid-$80s. Looks like a short-term blip for now — hopefully not the start of a longer trend. 💱 Rand/Dollar Update The rand is trading around R16.02 to the dollar, with the trend firmly toward a weaker dollar. Foreigners have been net buyers of South African bonds, and the US dollar index continues to show weakness — something Trump actively wants. If the dollar loses another 7–8%, that could push the rand into the mid-R14s. Sounds dramatic, but as Simon puts it: "Don't fight the rand." 🎙️ Next week: Budget reaction + AI SaaS research report review Thanks for listening — look after yourself, and if you can, look after somebody else too. ✌️ Simon Brown * I hold ungeared positions. All charts by KoyFin | Get 10% off your order