The “Great Reset”
As the global fall out of the coronavirus accelerates, there is a big push to for social distancing that has schools and businesses closing doors.
Most are moving onto digital platforms to ensure they aren't left behind. And there are many platforms out there that can facilitate learning and businesses.
The stock market is undergoing a “Great Reset” as the JSE falls to levels last seen in 2013. With shares carving out all-time lows, with over 85% of the JSE making fresh 52-week lows.
We're deep in correction territory and still have some more pain ahead. The Top 40 index is oversold.
As you can see below the Satrix 40 is on -5.8 standard deviation. This indicates the latest price action has been volatile and has moved away from the mean very quickly.
A figure greater than -2 indicates a 95% probability of reverting to the mean.
THREE that could SOAR: Get my urgent penny stock plays for 2020
Read my new, urgent briefing and discover:
• Why property is still the best investment
• Thanks to a shortage of pork and chicken in China, this South African poultry business could see a 106% increase in its share price in less than 12 months!
• This penny stock health administrator has been quietly buying up market share and very few investors have noticed… But that’s all about to change… And when the mainstream catches on its share price is going to explode.
Don’t rush in and buy just yet!
You should be putting bids in the market at “basement prices for quality companies. Banks will be very attractive 10% lower than the current prices. There are also several property companies that are on “more realistic” expected dividend yields of over 10%.
Historical dividend yields are not reliable so make sure you factor in lower earnings and impairments. Our pick of the sector is Redefine.
We’ve been accumulating for our managed portfolios as it’s been pulling back.
Keep an eye out for companies that are doing corporate actions, these special situations can result in small guaranteed profits for your portfolio amongst all the red.
Finova Capital, Wealth Manager