The state of our nation
A strong rally on Friday reversed losses on the JSE and helped the Top 40 close the week up 0,75%. Financials gained 2% while Industrials and Resources were marginally higher.
Markets continued to respond positively to the Trump administration's rhetoric, particularly regarding lower taxes. Data from China and Japan supported the market rally. The Nikkei rose 2,5% a... ››› more
I call it platinum fatigue…
Eight years ago, platinum hit $2,200/ounce.
It subsequently crashed to $800, recovered to $1,500 and dropped back to $800 again in 2016.
Everyone's basically given up on platinum, there's just been too much drama for the metal…
Did you even notice that platinum is up $100 since December 2017?
On 26 December 2016, Platinum was at $894 per oun... ››› more
AVI is a South African based company, listed on the JSE in the Food Products sector, and is centered on the FMCG market.
AVI's extensive brand portfolio includes more than 50 brands. The Group comprises of trading subsidiaries that manufacture, process, market & distribute branded consumer products.
AVI brands span across a range of categories including: hot beverages, sweet and savory bis... ››› more
Last week, we discussed how through one simple switch we managed to save our clients a cumulative 71% in 2016.
But this year we're going to try and do it again. So let's compare the investment cases of The Foschini Group (TFG) and Woolworths (WHL).
These companies share similarities in that they're both involved in apparel retailing in South Africa but have very different strategies when i... ››› more
As I predicted last year, 2016 was a year of consolidation. Our market went nowhere. But shares are much cheaper today than they were a year ago.
And that makes me optimistic about 2017.
But there's one industry in particular that I've got my eyes on.
It was arguably the worst sector for 2016.
One of the worst droughts in decades hit South Africa. Farmers lost crop... ››› more
The JSE was up 3,6% last week, adding to gains from the week before. The All Share index is now up 5% in two weeks, Resources 8,2%, Industrials 4,6% and Financials up 1,3%.
January is known to be a month with larger moves than normal, double digit figures are quite common. Watch out for the reversal in February. 2016 was a case in point…
Commodity Prices were firm with good gains from Pla... ››› more
JSE up 3,3%
Last week the JSE recovered from an oversold position to close the week with a gain of 3,3%. Financials gained 4,8% and Industrials were up 3,7%. Resources managed a gain of 1,5%.
DAX up 6,6%, CAC up 5.2%.
European markets breathed a sigh of relief as the Italian referendum failed, the Dax gained 6,6% and the CAC 5,2%. Italy was up 7,3% and Spain put in 6,5%
US Markets... ››› more
There are many widely available tools, tricks and techniques that will help you spot good businesses that are likely to increase in value.
But do you know how to spot companies that are going bust?
Well if there's one person who does, it's Scott Fearon.
An extremely successful money manager, Scott Fearon has shorted more than 200 companies that eventually ended up at zero. And spotting th... ››› more
3 to Buy
We're expecting positive results to boost this retailers share price
Yes, we have mentioned Steinhoff before, the stock has fallen significantly since June. They will release financial results later this week. We expect more clarity on the impact of Brexit and the acquisitions. Positive results will give the current price a lift, Buy Below R64,00.
A rare opportunity to ... ››› more
The JSE All-Share Index is just 10% off from its all-time high.
It's sitting around the highest PE level of all time for the index, at 23.24.
At the same time, US markets are at all-time highs, and interest rates are threatening to go up.
With this in mind, I was recently asked by an investor, whether the JSE is overvalued and set for a massive correction.
So, should you hold on or sel... ››› more
23 years ago, two brothers, David and Tom Gardner, founded and built one of the world's greatest investment communities - The Motley Fool.
Reaching millions of people every month through a website, books and the newspaper, they give independent financial and investment ideas to help ordinary investors make a lot of money.
But these brothers are more than this.
They've published best-selli... ››› more
Dear MoneyMorning reader,
US Stock up 3%, Emerging Markets down 4,5%
US Stocks recovered from sharply lower levels after a reconciliatory speech from President elect Donald Trump which eased market fears; Energy and Industrials were the leaders based on his plans for infrastructural development.
Emerging Markets have been left out in the cold as investors evaluate the impact of a Trump p... ››› 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
It's been an interesting year for gold bulls. The downtrend which brought the yellow metal down to its dismal dollar lows of $1050/oz in 2015 has reversed and gold is once again making an assault on the $1300/oz level.
In the meantime, thanks to the uncharacteristically strong rand, which is now 13% firmer since January, the rand price of gold has pulled back to R17,442/oz from highs of above R... ››› more
Big Movers of the week
GOLD Stocks down 8,3%
The rollercoaster ride in Gold stocks continued last week, after bouncing the week before the Index was down 8,3%. Sibanye faired worst falling 13,7% while all the other major gold stocks gave up their recent gains.
MTN up 5,7%
Rebounding from lows, MTN was up 5,7% last week after a year of problems. The company has announced several heavywe... ››› more
GOLD Stocks up 4,6%
Gold stocks bounced back, following a sharp selloff in the Gold price over the previous two weeks. It found support at $1260, which gave local stock some relief.
British American Tobacco 4,8%
Quarter 3 results from the Tabacco company were strong and the company has announced that it will buy out the rest of Reynolds America for $47 billion. The stock retreated on conc... ››› more
Guy Algeo, Founder and Director at Prodigy Asset Management gives you an exclusive look into what he'd consider a buy this week and which shares you need to take out of your portfolio......
Stock market overview
Gold down 4,5%
Bullion’s strong performance for the year saw a shape correction last week it was down $60 or 4,5%.
The Rand held firm and so the softer gold price had... ››› more
The JSE All Share Index is up 1% for the year so far.
The Top 40 index, representative of the most ‘stable' shares on our market is down a miserable 2.25% since 29 December 2015.
And our economy is struggling.
It's fair to say that 2016's been a tough year. Many companies are losing money (or at least making smaller profits), and very few shares are up.
But there are a select gro... ››› more
If you've been reading some of my articles in Trading Tips and MoneyMorning, you'll probably know I'm quite a stubborn trader.
Stubborn with the proven strategy and money management rules I've followed for the last 12 years. Stubborn with listening to the media and opinions of others.
And stubborn with the number of shares I watch on a daily basis.
In fact, I only look at 23 shares to tra... ››› more
If you're a long-term investor, you understand how challenging it is to find the right investments that will deliver your expected returns while you hold the stocks. Once you set your investment goals, you need to put a strategy in place to help you achieve those goals.
Now it's important to understand that there are no hard and fast rules to long-term investing. So it's important that you cre... ››› more
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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.