Last week's interest rate cut of 25 basis points (0.25%) has boosted retailers and shares with high debt levels. Improving sentiment and the prospect of a boost to economic growth provided support for the Rand.
Earning season is in full swing, as of Friday, 19% of the companies in the S&P 500 had reported results for Q2 2017 and 73% had beaten earnings and sales expectations.
In the we... ››› more
What if I told you, that you could get a big business for free? You don't have to put money down, but you'd own a portion of a franchise store, a farm or a factory…
Sounds too good to be true.
But the fact is, right now there are scores of opportunities like this on the JSE.
I call them “No money down shares”.
Simply put, these are companies where if you pay for a portion of ... ››› more
Like many of you, I receive a lot of emails every day.
Usually, my inbox is filled with new investment ideas from some of the world's best financial publications - Daily Wealth, Sovereign Society, Capital & Conflict, Motley Fool to name a few.
While I was reading, trying to find new investment ideas to share with my readers, one email in particular caught my eye.
And I just had to shar... ››› more
Global stocks are making record high after record high on the back of monetary policy that remains accommodative globally, inflation that's surprisingly low, the oil price below $50 and improving manufacturing data.
All this positivity is feeding into investor sentiment and it appears the rally that started out as a “Trump Bump” is growing stronger daily.
Locally, it's all about confid... ››› more
WTI Crude oil hit a low of $22 a barrel in early 2016. It then rose for much of the year, ending the year at $53.
But since the start of 2017, the oil price is down around 12% to $46.60.
So, with the oil price at lows, should you look at investing in the oil sector again?
Is demand growing fast enough or is supply still too high?
Get everyt... ››› more
The revolution in electric vehicles set to upturn industries from energy to infrastructure is also creating winners and losers within the world's biggest commodities markets.
When Tesla first passed Ford's market cap, it was a big deal.
The bigger news came later, when the electric automaker passed General Motors.
Now Tesla's technological revolution in electric cars has paid off again.... ››› more
Global markets have retreated over the past week as tensions rose on Trumps threats directed at North Korea.
Tensions will subside and global markets will continue their rallies on the back of positive earnings surprises.
The big earnings release for our market will be Tencent's (due to Nasper's stake in it) that will be released in the early hours of Wednesday.
All 32 major analysts tha... ››› more
The gold price in rand terms just hit its highest levels since April this year.
It has averaged around R16,400 per ounce for 2017, with a spike to R17,600 in April following Pravin Gordhan's axing.
More recently, the rand has weakened following yet another unsuccessful vote of no confidence in President Zuma.
At the same time, the dollar price of gold spiked with tensions between the U... ››› more
Over the past three years, the JSE's Financial index would've made you around 7%.
The JSE's Industrial's index would've returned around 27%, and had you invested in the Resources Index, you'd have lost a whopping 38% over the same period.
Clearly, you need to pay attention to where you're investing if you want to make money in today's tough market.
So, as we're heading into the last qu... ››› more
Today I'm going to explain an investment concept you may not have seen applied in the investment world.
But, I guarantee if you implement it today, it can drastically improve your investment decision-making as well as your overall portfolio performance.
In fact, two of the most successful investors - Warren Buffett and Peter Lynch used it to consistently pick winning investments.
Today... ››› more
Last week I told investors:
“There's one sector I'm more excited about than any… It's deemed one of the fastest growing sectors in South Africa!
For comparison, in 2016 the South African economy grew by 0.3%. The Information and Communications Technology (ICT) sector grew at a whopping 5% - more than 15 times faster according to an International Data Corporation report.
What's more... ››› more
We had a good week for our short-term trades.
• Sasol for a 6.71% gain
• Vodacom for 10.33% gain
• Sibanye for a 30%
All ungeared, see position updates below.
Paying too much for your retirement savings?
The weekend press has again highlighted the impact of costs your retirement savings. Most older policy are paying the industry norm of 3% and higher. It’s a littl... ››› more
Bitcoin - A new world currency…
If you had to ask most people to name a digital currency, the first answer you'd probably hear is Bitcoin.
Since 2009, Bitcoin has swept across the world offering new ways for people to transact, transfer money and even make money.
But how did bitcoin come to be?
Well first we have to go back to before Bitcoin was even an idea…
The Liberty dolla... ››› more
The northern half of South Africa had good rains in the past rainy season, and the rains predicted for this summer are also decent.
The Western and Northern Cape however still haven't had the rain (and snow) needed to top up dam levels and put them in the clear.
So how is this affecting businesses?
Construction in Cape Town is struggling
The construction industry in the We... ››› more
One of the easiest, and most popular ways to check if a share is a buy or sell in the stock market is to take the price of the stock or a pool of stocks, and then divide that by earnings.
This is the price/earnings (PE) ratio.
When the PE ratio is above some longer-term average, the stock is considered expensive - and possibly a sell.
When it's below average, it's considered cheap - an... ››› more
Disclaimer Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
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.