Things are tough right now. 2 million people are receiving UIF payments this month, instead of their normal salaries.
You might be worried about your business, your job security or how you'll pay bills at the end of the month.
And now banks are offering you a ‘Payment Holiday'.
In fact, some banks have offered payment holidays to clients even when they haven't asked…
Now, befor... ››› more
Speak to any financial advisor with half a brain and he'll tell you to go offshore.
Sure, South Africa may one day reclaim our early 2000 title of “investment darling of the emerging markets”, but it's not going to happen any time soon.
Our problems are simply too big. There's is no quick fix to Eskom, our ever-increasing sovereign debt or our 29% unemployment rate. So yes, that means ... ››› more
Last Friday, ratings agency Moodys dropped their outlook for SA debt from stable to negative. This means within the next 6 to 24 months it's likely we'll see the last of the three major ratings agencies cut our government debt rating to junk.
As an economist, I am now all but certain the downgrade will happen. SA will become a junk status borrower.
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Last week the Repo rate jumped more than 400%.
Now, I'm not talking about the South African rate which is set by the South African Reserve Bank.
I'm talking about the “real Repo rate”. The US one, which affects over trillions of dollars' worth of transfers each day.
This rate, which is normally just over 2% spiked up to 10% last Tuesday (17 of September) as global lending markets s... ››› more
Markets have been incredibly skittish over the last week.
And, while there are many reasons for concern, one of the main issues driving share prices lower is fear over the “inverted yield curve”.
If you skim the financial news, you'll see headlines like:
“Yield curve inversion hammers US small banks”
“Bond market yield curve inverts, signalling Fed may be too slow to cut... ››› more
Imagine this… You could've bought Capitec shares at R26 a share in 2008.
In the past year, the company paid investors R15.75 in dividends. That means 60.50% growth on your original capital JUST FROM DIVIDENDS.
If you add up all the dividends since 2008, investors received R69.88 in dividends. That's 268% growth from dividends alone.
In fact, a study of dividends and returns on shares... ››› more
Last week, I explained the power of income investing.
And how it can boost the overall performance of your portfolio…even in the worst of times.
I also revealed (in short) some of the best ways to start generating an income for your portfolio.
Today I'd like to delve deeper into one of those income investments.
The reason why, is because they offer more income than a normal share... ››› more
What would you prefer? A pay out of R5.5 million the day you retire, or lifetime guaranteed income of R46,772 per month every month till you pass away.
If you started saving R300 per month towards your retirement in 1978 (roughly 7.5% of the average household income back then) you'd sit with exactly that choice today…
So what's the best choice? How do you ensure that your money lasts you a... ››› more
On 4 May 2018 RECM and Callibre (JSE: RACP) announced that it is offering to buy out investors in Astoria shares (JSE: ARA).
Astoria shares traded at R11.71 that day, and RACP offered R13.50 per share.
That's a quick 15.3% gain investors can make, nearly instantly.
But is this a good deal, and should investors accept it?
SA’s new energy law could help make you 120% in the n... ››› more
The South African Reserve bank will hold its Monetary Policy Committee meeting between 26 and 28 March.
At this stage all the indications are that interest rates might actually drop by 0.25%.
That means, if you keep paying the same amount on your property loan, you will pay it off 13 months faster - just thanks to the lower interest rate!
So how can we know that this'll happen, and wha... ››› more
The market and currency have responded positively to the appointment of Cyril as President of the ANC.
We've seen the rand on the longest weekly winning streak since 2002, as foreign investors that were sitting on the sidelines start deploying capital in to SA stocks. As mentioned late last year, the stocks on their shopping list are SA focused companies with earnings mostly generated locally.... ››› more
President Zuma is trying to curry favour with supporters by investigating solutions to the “free” education agenda. The cost of this “free” education is an almost certain downgrade and the resignation of Michael Sachs. The Rand responded by weakening 20c yesterday.
We've been cautioning investors, to have an appropriate amount of their investable assets exposed to offshore investments.... ››› more
Imagine turning on the TV and finding the following Infomercial:
We are giving you the opportunity to invest in the S&P500. It is the world’s premier equity index, dwarfing the JSE. Receive dollar based returns while getting exposure to some of the world's largest and most innovative companies including Apple, Berkshire Hathaway and Caterpillar.
But that’s not all, we also gi... ››› 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
As it stands, we are at the tail end of an eight-year bull market and, by most estimates, markets in the developed world are massively overpriced versus historical levels.
When we have seen such conditions in the past, global markets almost always fell dramatically within a year or two.
Adding to this risk is the fact that the US Fed, the European Central Bank and a number of other central ... ››› more
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