Last week was a busy week with the market sailing through a gauntlet of central bank meetings, escalating trade tensions and a historic meeting between the US and North Korea.
Surprisingly the JSE held up relatively well buoyed by a weaker Rand. We've also seen volatility (measured by the VIX) drop back towards 12, a level that signals the market might not be pricing in the risk of a “Trump ... ››› more
Did you know in a 200-year period, nothing has come close to matching the long-term compounded returns of stocks?
In a study conducted by University of Pennsylvania finance professor, Jeremy Siegel,
showed that every $1 invested in:
• Treasury Bills, grew to $5,061
• Bonds were worth $18,235
• Gold rose to $32.84 204
And stocks returned a phenomenal $12.7 million.
But do... ››› more
Extremely wealthy people don't invest in ETF's. They don't buy properties from estate agent listings… They buy into private deals. They buy businesses before they even list on the stock market…
And, they typically do the opposite of what textbooks tell you to do…
They don't invest in hundreds of businesses and ‘diversify' their holdings by industry, country and market… They tend to... ››› more
Q1 GDP coming out at -2.2%, the worst since Q1 2009, reflects that the Ramaphoria optimism has not resulted in any tangible results and likely kept investors complacent.
The rand strength is hard to explain and perhaps it will weaken while investors and portfolio managers digest the impact of these GDP figures on their investments.
Look to pick up the quality rand hedges that have been sol... ››› more
Look at the graph below…
It may look like your typical graph of a company's share price, but it's not. And if it was, you'd better be worried.
But this graph actually depicts what a shrinking stock market looks like.
And right now, you need to know what it means and the investment approach you must take if you have any chance of making money from the JSE.
It... ››› more
What if I told you many investors are addicts?
Just like junkies are addicted to heroin…
Or gamblers addicted to casinos…
Or even, socialites addicted to social media…
The stock market is the drug and investors are addicted to it.
You see it's all got to do with...
Your Free Book is on hold
We’ve already ... ››› more
Did you know that you place higher value to things that you own?
To explain this, Pros. Kahneman, Knetsch & Thaler conducted a popular study with 77 participants at Simon Fraser University.
These participants were placed into two groups.
Group #1: Were given mugs (in a way they owned them).
Group #2: Were not given mugs but were asked to price the mugs.
Can you guess who priced the ... ››› more
Have you ever wondered what it would be like to make a 101.2% profit in just a few weeks?
Think of it like this:
A money market account will make you around 5% a year.
A unit trust? 10% if you're lucky.
And if you'd followed the JSE all share index last year, you'd have made a fairly decent 18%.
But what if I told you, our members made a 101.2% gain in just one trade.
And r... ››› more
Turn on Bloomberg and all you'll see is red…
The Dow Jones Stock Exchange crashed over 1,000 points dropping 4.15% in a day.
The S&P tanked 100 points dropping 3.75% in a day. And the Nasdaq fell 275 points dropping 3.90% in a day.
Come back to our local stock market and you'll see a big market drop.
Should you start to panic with your investments or will this pass.
Today, I'll tell... ››› more
I can remember my honeymoon like yesterday.
We were crazy in love.
And for months afterward this euphoric phase continued.
I could make no mistake in her eyes, nor she in mine. Everything was perfect.
Then suddenly reality struck. Our first big fight after getting married.
And suddenly we realized being married is tough, and the good times go hand in hand with the tough ones…... ››› more
A big factor in South African markets over the past few months has been the volatility, and my research indicated the retail share profits would jump.
To me this indicated a profit opportunity.
If the market was about to rise, then why not play according to those rules?
In mid November we had an opportunity to get into a real quality offering stock.
BREAKTHROUGH: Do not make any commi... ››› more
After being hit hard for the last two years, it looked like it was now ready to rally according to my 14 year old winning trading strategy.
With this we had a good opportunity to long (buy) into one of the South Africa's top insurance companies - Discovery.
I therefore gave the signal for Red Hot Storm Traders Long (Buy) the DSY CFD. (You will learn all about CFDs when you join and how t... ››› more
If you ask any trader how trading is going on the JSE, you'll hear the same thing.
“It's damn difficult.”
“The JSE can't decide on direction”
So whether you buy or sell, chances are you've got it wrong!
But if you know how to read a ‘Blue Diamond', you would know how to profit in this environment.
Let me show you what I mean…
I’m pr... ››› more
March 2009 - that was the first time I ever bought a share…
It was Old Mutual. And while Old Mutual was a massive company, the 2008 financial crisis decimated it, and the share became a ‘penny stock'.
I bought my first shares in the company for 603c, with the money I made from vacation work as a student at the mine I had a bursary with. I bought 990 shares with around R6,000.
By No... ››› more
Industrials down 3%
Industrials took the brunt of weaker markets last week as concerns regarding the economic outlook post US elections weighed on sentiment. Woolies was down 6,3% and several other industrial shares fell by approximately 4%.
Naspers down 7,9%
Rand strength and weakness in social media stocks put pressure on Naspers. Facebook was down 8,6% while Groupon fell 19%. Some anal... ››› more
“The JSE is too expensive, rather buy these offshore stocks”, if read this headline, and variations of it many times in the past year.
Yet, my Red Hot Penny Shares readers would've banked an average gain on shares we sold of 22.21% in 2016.
Whilst there are still calls to drop the JSE and put your money elsewhere I am optimistic.
I believe 2017 can be just as good, or better, than ... ››› more
**Trade Alert: What to Invest in NOW**
After an almost meteoric rise in share price, this small cap's share price has come back to earth.
And it's time to buy again.
You see this share has fallen from an all-time high of R16.99 on 31 October 2016 to R10.60 where it is today.
That's a similar price to a year ago, where it rallied over 65% in less than 7 months. And it did a similar thing... ››› more
I've been waiting for this for three years!
If you go look at the JSE All Share Top 40 Index, you'll see it's been going nowhere.
But us traders have been watching a very powerful indicator. This indicator shows us that momentum on the Index is picking up.
And finally, the buy signal has confirmed!
The JSE-ALSI has been lining up for a strong rally. In fact, I expect the JSE-ALSI will ... ››› 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
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
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