US interest rates on the rise.
Fed Chair Janet Yellen provided testimony last week indicating a high likelihood of another US interest rate hike in March. The markets are now pricing in a 0,25% hike. The US dollar is strengthening again.
Local markets were flat over the week. The All Share squeezed out a gain of 0,1%, Resources were similar and Industrials down marginally (0,5%), Fin... ››› more
Imagine a country with massive amounts of natural resources.
The richest economy in its region.
However, there are signs of trouble, including rising inequality and societal unrest.
To combat this the government is turning to populism by taxing the rich, confiscating assets and dramatically increasing the redistribution of funds to the poor.
This is not South Africa in 2017 I am t... ››› more
“The JSE is too expensive, rather buy these offshore stocks”, if read this headline, and variations of it many times in the past year.
Yet, my Red Hot Penny Shares readers would've banked an average gain on shares we sold of 22.21% in 2016.
Whilst there are still calls to drop the JSE and put your money elsewhere I am optimistic.
I believe 2017 can be just as good, or better, than ... ››› more
What do you believe an investor's greatest asset is?
A high IQ?
A stack of degrees behind their name?
A workable investment strategy?
Not at all.
In fact, the answer has nothing to do with money or personal success.
But it's something every potential investor can achieve.
Let me explain…
The world’s most famous investor confirms this... ››› more
The Budget was delivered without too much fuss. Everyone knew there would be a “Gap” and the balancing act was to find a suitable filler. The new tax bracket was a bit of a surprise, but the hiking of the marginal tax rate was expected. Never the less bracket creep was significant so everybody shoulders the burden.
In SA, the market fell 1%; Gold shares were under pressure as the Rand held ... ››› more
As an advisor to the South African Investor board I deal with investors that are looking for long term returns that'll help them live, and retire securely.
That means we typically look at companies like Vodacom, Naspers, Bidvest and the like.
Large blue-chip shares that have been around for years, and will continue to be there for years to come.
Recommending these large companies is th... ››› more
Where is, the Rand going?
The biggest surprise last week came from the Rand which strengthened another 2,3% against the US Dollar and 3% to the Pound. This put Rand hedge stocks under pressure and the Resources Index fell 2,7%. The JSE Top 40 index was down 1,5%.
The Dow Jones Industrial Average rose 1,8% and the S&P500 1,5%, touching new highs. European markets were firmer but m... ››› more
These days, investing for attractive income returns is extremely hard to come by.
Money market funds at most pay you 7.3%.
The average share on the JSE is only paying investors around 2.9% in dividends per year.
And once you factor in inflation, you're basically getting nothing!
But there is a way, you can invest for income and receive a return…
That beats every money market ... ››› more
Consolidated Infrastructure Limited (JSE:CIL) is one of those buy and hold for a decade shares.
The company had a mere R8.32 in net assets in 2011. Today they stand at R21.62 - nearly 200% growth.
CIL also grew revenues from R1.4 billion in 2011, to R4.5 billion in 2016. That's a whopping 221% revenue growth.
And it's profit growth has been just as remarkable as it rode the wave of exp... ››› more
The state of our nation
A strong rally on Friday reversed losses on the JSE and helped the Top 40 close the week up 0,75%. Financials gained 2% while Industrials and Resources were marginally higher.
Markets continued to respond positively to the Trump administration's rhetoric, particularly regarding lower taxes. Data from China and Japan supported the market rally. The Nikkei rose 2,5% a... ››› more
When I began investing, I used to buy and sell shares without even knowing exactly what the company did.
And my game plan couldn't have been more straightforward: If the share was moving higher, I bought it. If the share was falling, I sold it. I simply didn't care about the economics of a company.
This wasn't much of a strategy though. In some cases, it would work but it certainly never g... ››› more
The JSE Top 40 closed the week down 1,5%.
Higher commodity prices; Gold, Silver and Brent Oil were up more than 2%, while Platinum managed 1,6%. These were not enough to save the Resources Index (down 3%) from a stronger Rand. Industrials and Financials were also softer.
Anglogold up 9,3% and Harmony 9,5% responding to a firmer Gold Price (up 2,5%).
PSG rallied 6%, see comment below. ... ››› more
Please don't let your portfolio fall because of this single mistake…
In 2014, I got a mail from an investor:
I'm not investing in a single investment recommendation of yours again. I've bought Mr Price shares with my whole portfolio. And at the rate it's going now, I'll retire in a few short years.
I bought Mr Price at R136 in February, and now that it's August, the sha... ››› more
Since 28 December 2016, the JSE has rallied around 6%.
Some investors or analysts will say it's just erased the losses from last year.
But many will say the strong rally will continue delivering even more returns.
Whether or not that's true, it would be no surprise to now see investors pile money into the stock market.
And if you're one of those investors, that have been waiting pa... ››› more
I call it platinum fatigue…
Eight years ago, platinum hit $2,200/ounce.
It subsequently crashed to $800, recovered to $1,500 and dropped back to $800 again in 2016.
Everyone's basically given up on platinum, there's just been too much drama for the metal…
Did you even notice that platinum is up $100 since December 2017?
On 26 December 2016, Platinum was at $894 per oun... ››› more
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Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
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