This week is full of event risk; the US interest rates announcement, the market expects a 25-basis point increase, with an 85% probability, US and North Korea summit, US CPI, UK unemployment, ECB committee meeting and Italian policy uncertainty.
All of these could push investors towards less risky assets in developed markets.
Short term traders should focus on Rand sensitive shares as volati... ››› 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
No matter what you financial situation is, there's nothing more devastating than seeing the Sheriff auctioning off your business, home and other assets because you lost your job or a business venture you put your heart, soul and life-savings into went bad.
That's why it's vitally important to make sure your assets are protected from creditors in the event of any unforeseen eventuality like inso... ››› more
The best legal way to make sure you don't lose your money is to distance yourself from it.
Let me explain...
Putting your assets into a trust means that you don't personally own them anymore. The assets are held in trust for the benefit of the beneficiaries. The trustees simply manage these assets. When everyone involved signs this contract the Mater of the High Court registers the trust. ... ››› more
When looking into companies to invest in, it's easy to concern yourself with profits. And this can lead you to ignore the balance sheet.
But you need to pay attention to the balance sheet, particularly goodwill.
What is goodwill?
The balance sheet contains a company’s assets. You’ll find goodwill listed here.
Goodwill is an intangible asset. It can be a number o... ››› more
Investing is all about finding great businesses to buy into.
When you buy shares, you become a part owner in a business. So it's vital you pick the best quality business to put your money to work in.
So how can you determine if a company is a great business or not?
Read on to find out…
Find the best shares to buy with this quality measure
A great way to test a business before i... ››› more
This morning, the rand fell 1% against the dollar as concerns grow over what's happening in Greece.
With the Greek government opting to close banks and its stock exchange, and tomorrow's loan payment looking close to default, financial markets around the world are under pressure.
The rand is feeling the rush from a move to ‘safer' assets.
Let's take a closer look at what's going on…
... ››› more
When building a long-term investment portfolio to build your wealth, you need to consider what to include.
Whilst stocks may be the first things that spring to mind as an investment opportunity, it's a good idea to add in other asset classes too. This helps to boost your portfolio's diversification and reduces your investment risk.
So what are you options?
Read on to find out…
Fiv... ››› more
Asset allocation, along with portfolio diversification, is all about investing in a mix of asset classes.
The asset allocation you select will vary depending on whether you're investing for capital gains or income. And the level of risk you're comfortable with will also have a bearing.
So how can you work out what suits you?
Read on to find out…
What sort of asset allocation suits... ››› more
Rebalancing your portfolio is all about keeping the different types of assets you hold within certain percentages.
The idea behind this investment strategy is to reduce your portfolio risk by ensuring you don't let you portfolio get too heavy in certain assets.
But what about your returns? Rebalancing can limit your returns as by selling off assets that have grown in value, you can lose out ... ››› more
Every now and then you probably have a look at what your portfolio and other assets are worth. Whether it's for retirement planning reasons or to see how much money you have to hand, there's a need to have a look.
But are you looking at your portfolio and assets correctly? Are your assets actually worth what you think?
Let's take a closer look…
The assets you own
Probably the bigg... ››› more
Calculating your net worth means finding out exactly how much money you have if you sold all your assets and paid off all your debts.
It's an important part of financial planning, especially if you're looking to buy a new house, retire, or send your child off to college.
Knowing your net worth helps you make better financial decisions that could affect your future.
Having a negative net w... ››› more
Yesterday, one of South Africa's biggest coal producers, Exxaro Resources, announced that it acquired Total's coal assets based in South Africa.
The share price rallied on the news and closed firmly higher.
Let's take a closer look at what this means for Exxaro…
Exxaro buys SA’s fifth biggest coal producer
Exxaro will acquire “Total Coal South Africa, South Africa’s fifth la... ››› more
“Trust us. We're from the government.” That's just what those in power are telling you to do. Does it reassure you?
If you rely on the government to protect your hard-earned savings, you might as well give up now. If, however, you would like to protect your family's future from the worst effects of this crisis, this article is a brief introduction to why and how you should do it.
There a... ››› more
When it comes to investing, it can be too easy to pay over the odds for a particular asset. Many investors feel an urgency to commit and buy, instead of taking their time and buying at the right price. One of the most crucial things when you invest is to not pay over the odds for an asset, whatever it is. You'll live to regret it. Let's take a closer look at why this is the case…
Don’t pay ... ››› more
When you're looking to invest in a company, the normal route is to try buy shares that will rise in price and you can sell for a profit. But there can be another way to try and make a profit. You just need to dig deep into the assets the company has. Let's take a closer look at what this entails…
Look at a company’s assets
There is a way that you can make money from a terrible company if y... ››› more
The price to book ratio is a good ratio to use if you want to weigh up companies that have large assets, such as property companies. But the ratio uses the balance sheet for its ‘book' value. And it's from this which the problem can arise. These figures can change a lot over time. Let's take a closer look at the problems you can encounter when using the price to book ratio…
The problem w... ››› more
When it comes to your retirement, one of the things you need to consider is how you'll plan your estate. But here's the thing most people don't realise, Capital Gains Tax (CGT) places a big spanner in the works for doing this. And that's why you need to explore the tax effects of CGT on your estate plan. But to do that, you first need to know which assets CGT affects and which ones it doesn't…
... ››› more
As a consumer, you use a wide array of financial products. You buy insurance for your car and house. And chances are you have a bond on your home. But when it comes to shares, the very thought of selecting a few to invest in can put many people off. But that's where unit trusts come in. They do the picking for you. Let's take a closer look at the basics of unit trusts…
What is a unit trust fun... ››› more
When the financial crisis struck, many investors dumped their shares and ran. One asset class that benefited was bonds. Investors looking for a safer home for their money invested in them. And the action of central banks around the world also helped the bonds market. Let's take a closer look at how bonds work and if you should invest in bonds…
After the financial crisis hit in 2007, central ba... ››› 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.