- Where else can you get a 35% return a year on your money?
- 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
- [08 June 2017]
- SA firmer, US softer, OPEC may curb production further - Three JSE stocks to buy with updates
- Local markets were slightly firmer across the board last week, assisted by some Rand weakness and better commodity prices. US markets were slightly softer, the UK rallied 1,8% while Europe was flat.
US economic data did not meet expectations, which has called the pace of continued rate hikes into question. The US dollar gave up ground against most major currency pairs. Political uncertainty re... ››› more
- [17 May 2017]
- Macron wins French election, settles markets - Two to buy and one to sell
- US markets closed at record highs on Friday, helped by technology stocks like Apple, Facebook and Google. The strength of the US markets is filtering through to other developed markets and the victory by Emmanuel Macron in the French elections eliminates one more hurdle. Improving global sentiment bodes well for the weeks ahead.
The rise in technology stocks is playing out nicely for our inve... ››› more
- [09 May 2017]
- Why I'm not hot on the South African retail sector
- The Foschini Group is down 10.54% in the last month, Mr Price 10.40%, Truworths 6.33%.
And Lewis crashed a whopping 16.70%.
If you're invested in retail, it's been a bad month for you.
But before you start buying into the sector because it ‘shows value' I want to warn you…
South African retail sales are dropping and you need to watch out for the fallout
In its m... ››› more
- [26 April 2017]
- If you bought Lifecare Health two weeks ago, you'd be up 27% - Two to buy and one to sell
- Global markets are watching developments around the French elections for direction. Once again, a far-right candidate, with radical views is the underdog and has the potential to create a shock to the status quo.
Emmanuel Marcon is leading Marine Le Pen after the first round, both candidates have offered to hold referendums on remaining part of the European Union.
The US earnings season k... ››› more
- [25 April 2017]
- Use the Rule of Four to keep your portfolio in the green in ANY market
- How you can diversify yourself to safety with the ‘Rule of Four'
What do you do with your money in a crisis? Do you sell your share portfolio? Do you stick everything in a bank account, in property or in gold?
That's the question that popped up around a campfire I had going with friends over the weekend.
Considering South Africa's junk status, state capture and political unrest that'... ››› more
- [19 April 2017]
- Moving swiftly along - Three to buy
- A week of heightened protests has ended and the ANC Cadre are holding the fort, for now. Their confidence masks the growing dissension from all sides, including members of its own party, eventually pressure will come to bear.
Fitch followed S&P in downgrading SA, but again the reaction was relatively muted. Clearly the market had been preparing for this eventuality. Of more concern is that som... ››› more
- [11 April 2017]
- The one number that matters when it comes to share price direction
- Today I'm going to explain why you don't ALWAYS need to follow…
Hot tips in the media
to know where share prices will go.
In fact, you only need to know one number to see if a company's shares will go up or down. And the best part, every investor can use it!
Although successful investors like Warren Buffett, Peter Lynch and John Temp... ››› more
- [10 April 2017]
- Cabinet reshuffle announced - Two to buy and one to sell
- Admittedly, I expected more movement in the Rand once the cabinet reshuffle was announced. We have a saying that “the Market always knows” which seems to apply in this case.
When Mr. Nene was removed, the Rand fell 8,5% within the first few days and then extended those losses by another 10% a few weeks later. By comparison the Rand has loss only 7% so far, perhaps the Market knew that SA I... ››› more
- [06 April 2017]
- Choppy waters ahead? - Two to buy and one to sell
- The news yesterday that several ministers have been recalled to SA has created some consternation; the Rand jolted back 3%. There is speculation of a cabinet reshuffle and/or further legal developments relating to the impasse between Treasury, Banks, and the Gupta's…...
The new Mining Charter is expected to be released this week. And the market is bracing itself for new challenges. This just... ››› more
- [28 March 2017]
- "Triple Witching" stirs local market rally- Two to buy and two to sell
- “Triple Witching” refers to the combined expiration of the Index futures, Index options and stock options. In the UK and US this happens on Friday's, but in SA it happens a day earlier on Thursday. The event typically creates increased market activity and in some cases volatility.
Global markets were relatively subdued for last week's expiry, the US, UK and European majors were firmer by b... ››› more
- [21 March 2017]
- Commodities take a step lower - Three to buy and one to sell
- Commodities take a step lower
Brent oil led the commodity basket lower last week, losing 8,1%; Platinum and Gold were down 5,7% and 2,4% respectively.
Although the Rand softened, the pressure was too much for the JSE All Share Index which fell 0,8%. Resources fell 5,5%, but the rest of the sectors held up well.
International indices were slightly softer across most time zone... ››› more
- [16 March 2017]
- US interest rates, Three to buy and one to sell
- US interest rates on the rise.
Fed Chair Janet Yellen provided testimony last week indicating a high likelihood of another US interest rate hike in March. The markets are now pricing in a 0,25% hike. The US dollar is strengthening again.
Local markets were flat over the week. The All Share squeezed out a gain of 0,1%, Resources were similar and Industrials down marginally (0,5%), Fin... ››› more
- [16 March 2017]
- Why I'm calling a buy on the JSE, even though many call it expensive
- “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
- [02 March 2017]
- Budgets, Two to buy and two to sell this week
- The Budget was delivered without too much fuss. Everyone knew there would be a “Gap” and the balancing act was to find a suitable filler. The new tax bracket was a bit of a surprise, but the hiking of the marginal tax rate was expected. Never the less bracket creep was significant so everybody shoulders the burden.
In SA, the market fell 1%; Gold shares were under pressure as the Rand held ... ››› more
- [28 February 2017]
- Getting it right… 2 to buy and 2 to sell
- Where is, the Rand going?
The biggest surprise last week came from the Rand which strengthened another 2,3% against the US Dollar and 3% to the Pound. This put Rand hedge stocks under pressure and the Resources Index fell 2,7%. The JSE Top 40 index was down 1,5%.
The Dow Jones Industrial Average rose 1,8% and the S&P500 1,5%, touching new highs. European markets were firmer but m... ››› more
- [22 February 2017]
- One of the JSEs most undervalued shares, and the good news Zuma's state of the nation address brings for it
- Consolidated Infrastructure Limited (JSE:CIL) is one of those buy and hold for a decade shares.
The company had a mere R8.32 in net assets in 2011. Today they stand at R21.62 - nearly 200% growth.
CIL also grew revenues from R1.4 billion in 2011, to R4.5 billion in 2016. That's a whopping 221% revenue growth.
And it's profit growth has been just as remarkable as it rode the wave of exp... ››› more
- [16 February 2017]
- Valentines Stocks! + 3 to buy and 1 to sell
- 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
- [16 February 2017]
- The state of our nation + 3 to buy and 2 to sell
- The JSE Top 40 closed the week down 1,5%.
Higher commodity prices; Gold, Silver and Brent Oil were up more than 2%, while Platinum managed 1,6%. These were not enough to save the Resources Index (down 3%) from a stronger Rand. Industrials and Financials were also softer.
Anglogold up 9,3% and Harmony 9,5% responding to a firmer Gold Price (up 2,5%).
PSG rallied 6%, see comment below. ... ››› more
- [08 February 2017]
- The shiny trade no one is talking about…
- 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
- [01 February 2017]
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