In just a couple of days, around R183 billion was wiped off Steinhoff's market cap. The company's shares have lost over 80%. CEO Markus Jooste resigned with immediate effect.
Investors, asset managers and fund managers lost a fortune!
So what exactly happened?
"Steinhoff has involved itself in some shady dealings which involves accounting irregularities and overstating profits.”
... ››› more
Last week, cryptocurrency expert Sam Volkering shared how international companies are investing in blockchain technology.
Companies like financial technology provider Novatti Group.
“Novatti signed an MOU (memorandum of understanding) with Lightyear.io, an organisation that works with the Stellar Development Foundation. Stellar has developed a blockchain, but instead of providing pure pe... ››› more
Immigration is one of the most divisive topics in global politics.
It's split political parties, as well as nations. One side wants to lock down borders and stop the influx of immigrants into the country.
While others are happy to welcome almost anyone through our borders. At least, that's the story you're likely to read and hear about.
In reality it's a far more complex issue, one tha... ››› more
The cryptocurrency I want to tell you about today was founded in 2014 under the development of a team of Japanese developers.
This year, this cryptocurrency has seen incredible growth.
My colleague and cryptocurrencies guru, Sam Volkering explains why…
“The reason is that the Japanese crypto market continues to see money flow out of the “traditional” banking and finance system,... ››› more
On 1 January 2017, this cryptocurrency's price stood at around $8.24.
At that time, its market cap was around $720 million.
Fast-forward to today, its market cap has grown past $30 billion. But even better, its price has soared to around $322 - which is a 3,807% return compared to Bitcoin's 453% return this year.
In other words, a R120 investment into this cryptocurrency on 1 January 2... ››› 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
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
The State of the Nation Address (SONA) was certainly a spectacle, unfortunately mainly for the wrong reasons. However, as South Africans, it's essential to analyse the SONA - especially as it could have a significant impact on our lives.
Personally, I found three aspects of SONA particularly troubling…
Why investors should be worried about SONA 2017 #1: The violence
In hi... ››› more
Last year in MoneyMorning, I wrote about “How unicorns” are the next “Tulip Bubble crisis.”
“Unicorns” are the name given by Silicon Valley to private start-up tech companies that have valuations of $1 billion or more. They're usually categorised as innovative, high growth companies.
But as I explained last year, many institutional investors pile cash into “... ››› more
About 10 years ago, I gave up with investing. The returns were just too slow for my liking.
And so, trading took over a big portion of my life.
Now as you know by now I'm a trader by heart. But I also understand that I need to diversify my money for the future. Why? Well, it's better to grow my retirement kitty with multiple streams of income, rather than with just one or two.
With the st... ››› more
There are a few things with trading that worry me.
The first is when the internet connection cuts out when I'm trying to get into a trade or when I modify my trading levels.
Second, is when the market environment goes into a sideways range where no matter whether we buy or sell - we lose either way.
And third, is when my subscribers write to me and tell me about the worst possible trading... ››› more
In 1995, SARS collected just over R127 billion in tax revenue.
Today, that figure stands at R1.14 trillion.
By 2018, SARS aims to collect R1.26 trillion in tax revenue.
In short, SARS is coming after more of your money.
And they will do everything in their power to get their greedy hands on as much of your money as possible.
But what if I told you…
Th... ››› more
I'm writing to let you know about an exciting and radical new project that we've just launched here at South African investor.
It's like nothing you'll have ever seen or read before. In fact, as far as I'm aware, this is a unique project in South Africa.
If you don't know, I'm a bit of a ‘tech head'. OK, that's an understatement. I'm a major tech head.
Since I got my hands on an old... ››› more
I call it the “offshore investment conundrum”. Investors have no clue where to invest or what to invest in, leaving their cash exposed to unpredictable economic and political events. Investing in just any old offshore product will cost you time and more importantly, money.
While I admire the ambition of investors to identify opportunities elsewhere, the fact of the matter is, over half of ... ››› more
You have to go back more than 400 years where the first major “asset bubble” happened.
Between November 1636 and May 1637, tulip prices soared 20-fold, before plunging 99%.
Then from January 1720 to June, the second major asset bubble occurred also known as the South Sea Bubble.
Shares from UK-based South Sea company surged more than eight-fold from £128 to £1,050, before collapsing... ››› more
Ah South Africans! Blinded by politics, multicultural in every way, revered by the world... But man, do we suck when it comes to money?
We're a country of proud people. We've survived some of the most severe political turbulences the world has ever seen. We beat it all. Despite all the challenges our country still faces, we have a proud heritage.
Maybe that's why so many of us refuse to adm... ››› 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
It's a global argument that continues to gain traction and plague most fund managers. Crucially, today this argument is becoming more prevalent in the South African financial industry.
I'm talking about performance fees.
Should they be removed? Are investors getting their money's worth when investing in a fund?
There's a growing consensus that performance fees only benefit the fund man... ››› 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.