Right now, there are just north of 400 shares on the JSE.
Of these shares, investment funds only invest in the top 40, and perhaps the top 100… Only 161 shares are on the JSE All-Share index…
If you invest in a fund you're most likely investing in the JSE's Top 40 Index. Unit trusts simply don't deviate from the index too far, because that's the only way they can match the index perfor... ››› more
Have you ever heard of the “Value Chain”?
Well, it's an old concept developed in the early 1980s by Harvard Professor Michael Porter.
Porter spent much of his career devoted to analysing competitive strategies.
In his 1985 best-seller book, "Competitive Advantage”, Porter discussed the power of the “Value Chain” and why companies that get this concept right are more likely to... ››› more
Admittedly, I expected more movement in the Rand once the cabinet reshuffle was announced. We have a saying that “the Market always knows” which seems to apply in this case.
When Mr. Nene was removed, the Rand fell 8,5% within the first few days and then extended those losses by another 10% a few weeks later. By comparison the Rand has loss only 7% so far, perhaps the Market knew that SA I... ››› more
Today I'm going to explain why you don't ALWAYS need to follow…
Hot tips in the media
to know where share prices will go.
In fact, you only need to know one number to see if a company's shares will go up or down. And the best part, every investor can use it!
Although successful investors like Warren Buffett, Peter Lynch and John Temp... ››› more
A week of heightened protests has ended and the ANC Cadre are holding the fort, for now. Their confidence masks the growing dissension from all sides, including members of its own party, eventually pressure will come to bear.
Fitch followed S&P in downgrading SA, but again the reaction was relatively muted. Clearly the market had been preparing for this eventuality. Of more concern is that som... ››› more
How you can diversify yourself to safety with the ‘Rule of Four'
What do you do with your money in a crisis? Do you sell your share portfolio? Do you stick everything in a bank account, in property or in gold?
That's the question that popped up around a campfire I had going with friends over the weekend.
Considering South Africa's junk status, state capture and political unrest that'... ››› more
In 1973, Egypt and Syria launched an attack on Israel.
During this war, Israel was supported by its close ally, the US.
In response to US support, the Organisation of Arab Petroleum Exporting Countries (OPEC), who control much of the world's oil market, implemented an oil embargo against the US and its allies.
Consequently, the price of oil soared from $3 a barrel to $12 a barrel.
... ››› more
Global markets are watching developments around the French elections for direction. Once again, a far-right candidate, with radical views is the underdog and has the potential to create a shock to the status quo.
Emmanuel Marcon is leading Marine Le Pen after the first round, both candidates have offered to hold referendums on remaining part of the European Union.
The US earnings season k... ››› more
The Foschini Group is down 10.54% in the last month, Mr Price 10.40%, Truworths 6.33%.
And Lewis crashed a whopping 16.70%.
If you're invested in retail, it's been a bad month for you.
But before you start buying into the sector because it ‘shows value' I want to warn you…
South African retail sales are dropping and you need to watch out for the fallout
In its m... ››› more
We've all heard the expression to make money in the market you need to, “Buy low and sell high.”
Well today, I'm going to shatter that conventional wisdom and introduce you to one investor who managed to master the art of “buy high and sell higher”. And in doing so, become one of the world's greatest investors.
It was so effective, that his stock recommendation publication returned... ››› more
US markets closed at record highs on Friday, helped by technology stocks like Apple, Facebook and Google. The strength of the US markets is filtering through to other developed markets and the victory by Emmanuel Macron in the French elections eliminates one more hurdle. Improving global sentiment bodes well for the weeks ahead.
The rise in technology stocks is playing out nicely for our inve... ››› more
If it all hits the fan and the market goes downhill, does your investment portfolio have enough protection?
Most people can't give a confident straight answer of “yes”.
And this is a big problem.
But relax, because you can kick this problem to the curb.
By using a concept that is described by Editor at Stansberry & Associate, Dr David Eifrig Jr as, “100 times more imp... ››› more
Local markets were slightly firmer across the board last week, assisted by some Rand weakness and better commodity prices. US markets were slightly softer, the UK rallied 1,8% while Europe was flat.
US economic data did not meet expectations, which has called the pace of continued rate hikes into question. The US dollar gave up ground against most major currency pairs. Political uncertainty re... ››› more
The Davis Tax Committee (DTC) has issued an invitation for submission, by the public, on a proposed South African wealth tax. You are likely familiar with taxes on income (PAYE) or even spending (VAT), but you have likely never encountered a true wealth tax.
A wealth tax, as the name suggests, is a tax on your wealth.
There are three basic forms discussed in South Africa. The first two, de... ››› more
News flow seems to have subsided for now, markets continue to grind gradually higher. The JSE added 1% last week on the back of stronger commodity prices; Brent recovered 3,4% after trading softer for several weeks.
Internationally, markets continue in a holding pattern; testing new highs. Commodities are responding to a weaker dollar and US Markets stumbled for the second time on new challen... ››› 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.