The JSE All-Share Index is just 10% off from its all-time high.
It's sitting around the highest PE level of all time for the index, at 23.24.
At the same time, US markets are at all-time highs, and interest rates are threatening to go up.
With this in mind, I was recently asked by an investor, whether the JSE is overvalued and set for a massive correction.
So, should you hold on or sel... ››› more
Think Berkshire Hathaway and the first person that comes to mind is Warren Buffett.
But did you know much of Buffett's and Berkshire's success was down to his partner?
His name is Charlie Munger and he's the Vice-Chairman of Berkshire & Hathaway.
Before Munger partnered with Buffett, he managed his own investment partnership, which averaged returns of 19.8% a year from 1962 to 1975 beatin... ››› more
The producer price index, non-farm payrolls, new housing starts, gross domestic product….
The list of economic indicators released monthly is massive.
The South African Reserve Bank alone releases a four-page report with more than 110 different economic indicators each month. That's not even considering international indicators.
So, which of these indicators should you keep an eye on, a... ››› more
What is the difference between “Red Hot Storm Trader”, “Forex Trader” and “The Winning Streak”?
It has come to my attention. Majority of our members have no idea about the differences between our three exclusive trader services.
Whether it's on the InvestorsClub.co.za, seminars or just face to face, I've been asked the same question for the last four years.
Today for the first... ››› more
There are many widely available tools, tricks and techniques that will help you spot good businesses that are likely to increase in value.
But do you know how to spot companies that are going bust?
Well if there's one person who does, it's Scott Fearon.
An extremely successful money manager, Scott Fearon has shorted more than 200 companies that eventually ended up at zero. And spotting th... ››› more
From 2013 to 2015, South Africa's listed property sector has achieved a 17% annual average return.
Over the same period, that's:
Five times more than what SA bonds returned
Three times more than what SA cash returned
3% better return than what SA equities has achieved
But the many investors who allocated a large portion of their wealth into listed property in 201... ››› more
2016 has been a year many will quickly forget, but for the shock results of the Brexit vote and the US elections; it was a year where many cans were kicked down the road.
Global growth remained benign and potential silver-linings have yet to gain material traction because of lingering uncertainties such as the future US foreign policy, the tensions in South East Asia, lingering debt problems i... ››› more
Happy new year everyone, I hope you all had a good break and did tons of holiday shopping for your friends and family!
Why? Because yesterday marked the beginning of the retail reporting season. And, in the next couple of weeks we're going to see just how much South African's spent at the shops in December.
There is no doubt the market is expecting a super tough Xmas period for the beleag... ››› more
As I predicted last year, 2016 was a year of consolidation. Our market went nowhere. But shares are much cheaper today than they were a year ago.
And that makes me optimistic about 2017.
But there's one industry in particular that I've got my eyes on.
It was arguably the worst sector for 2016.
One of the worst droughts in decades hit South Africa. Farmers lost crop... ››› more
No one can accurately predict where the markets will go in 2017.
The fact is, the markets become volatile in times of uncertainty.
And when the markets become volatile, there's a good chance your investments could decrease in value. This is simply known as market risk.
The main causes of market risk are recessions, political turmoil, natural disasters and terrorist attacks. Or even sm... ››› more
AVI is a South African based company, listed on the JSE in the Food Products sector, and is centered on the FMCG market.
AVI's extensive brand portfolio includes more than 50 brands. The Group comprises of trading subsidiaries that manufacture, process, market & distribute branded consumer products.
AVI brands span across a range of categories including: hot beverages, sweet and savory bis... ››› 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
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
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
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
Disclaimer Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
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.
Editors or contributors may have an interest in investments commented on in this newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.