The other day, while making my morning coffee, a work colleague asked me about an opportunity to earn an 11.5% return on a fixed-term bond investment.
And she wasn't talking about RSA Government Retail Bonds. She was talking about investing in a Participation Bond Fund, specifically the FedGroup Participation Bond Fund.
When you invest in a Participation Bond Fund, money is pooled with oth... ››› more
Nothing could prepare investors for the volatility that we've seen in the markets in recent months. It's been interesting to watch the economy dodge junk status, the JSE tank under Brexit and investors scramble around trying their best to find investment opportunities.
The good news is, just because the financial markets are going crazy, doesn't meant there are no opportunities for your to pro... ››› more
The drought that's battering Southern Africa right now is going to wreak havoc on your pockets in the near future. South African corn farmers are expected to produce the lowest maize produce in 8 years.
The last time production numbers were this low was in 2008.
The numbers are concerning and it seems that South Africa will have to drastically increase the amount of maize it imports to 3.8... ››› more
Rolling black outs are something we've become used to here in SA during the cold winter months. But rolling black outs in March, that's a bit early isn't it. Apparently not. Earlier today, Eskom warned that “seven days of continuous rain have affected [its] power stations in Mpumalanga and is still affecting coal mines”. The result? The production of electricity has come into jeopardy leaving ... ››› more
Three years ago, I walked into the FSPInvest boardroom. Seated at the freshly polished mahogany table in front of me were six specially selected investment interns. These were some of the brightest investment minds the management team at FSPInvest could find in South Africa.
They just passed a rigorous interview process that earned them the right to be an intern at the FSP Invest office. All o... ››› more
If you're celebrating that we're almost through winter and had no load-shedding, I have some bad news for you.
You and I might have had an “uninterrupted” power supply this winter but it's going to cost our pockets, big time!
According to an article in the City Press newspaper this weekend, “The economy is set for a shock from the combined blows of Eskom's move to hike the cost of tw... ››› more
The gold price hit $1,354. It's the first time that it's above $1,300 since 2014! That's big news. And since the Brexit, all you hear is how investors are fleeing to the safety of gold.
But I'm much more excited about another precious metal right now.
I'm talking about platinum of course…
The platinum price started 2016 at $820/ounce. Today it's trading $280 higher at $1,100 per ounc... ››› more
Thankfully, things have changed since the dark days of apartheid. The investment markets are certainly not racist, sexist or homophobic. If you have enough money, you can invest in anything you want. But the successes you achieve in the investment markets are based on the strategies you use, the opportunities you see and the risks that you avoid.
With that in mind, I want to introduce you to ... ››› more
Just imagine the shock I got when I read that, “59% of TFSAs have been opened at banks, and the majority of investments are in cash.”
Really? Cash investments? That really worries me.
Think about this…
Investing in a tax-free deposit account from the major South African banks will give a return between 6%-8%. But consider that inflation is sitting at 6.1% and not going to stop th... ››› more
Last year was a rough year for markets. The All Share Index only managed to eke out a measly 5.22%, almost a third of its long-term average return. It was also a year in which we witnessed the spectacular fall from grace of two the JSE's former market “darlings”.
MTN which delivered 136.23% between 2010 and 2015, ended the year down -36%, after getting smashed on the news of its Nigerian ... ››› more
When the results of the Brexit referendum came on Friday 24 June 2016, the rand fell more than 8% against the dollar. This was the biggest fall against the American currency since 2008.
The international impact of Britain's decision to leave the European Union is making it difficult for investors to figure out what to invest in next. If you're feeling confused, there is one market that still o... ››› more
Since the result of the Brexit referendum came in last week, investors have watched millions disappear from the companies in their portfolios. This week, it's the South African financial stocks that took the brunt of the impact.
- Nedbank (JSE: NED) is 4% lower this week
- Standard Bank (JSE:SBK) fell 4%
- Barclays Africa (JSE: BGA) also took a 4% knock
- While FirstRand (JSE: FSR) fell ... ››› more
Last week, the Zimbabwean Government implemented a law causing major unrest in the border towns of Zimbabwe and South Africa.
The introduction of Statutory Instrument 64 of 2016 (SI64) restricts the import of certain goods from South Africa into Zimbabwe. This includes items like plastic pipes, doors, bottled water, window frames, baked beans, potato chips... Even peanut butter got the cut.
... ››› more
Investing in South Africa today is proving to be a challenge for even the best investors. We have to deal with constant attacks to our investment capital.
Scam artists, investment fees, taxes, increasing cost of living as well as political decisions both local and internationally all seem to be aligned to do one thing, eat away at the wealth we are trying so hard to build.
The current situ... ››› more
IT seems that Africa's largest cellular network provider, MTN is in for a few more changes to its executive structure.
MTN released a statement to its shareholders informing them that Brett Goschen, the company's Chief Financial Officer is leaving the company on 30 September 2016. Goschen will also be stepping down for MTN Group's board of directors.
In the meantime, CEO of MTN Rwanda, Gunt... ››› 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.