Being a smart investor comes down to the way you manage your risks.
The one thing that pulls so many investors' portfolios down is not cutting losses. The impact is huge.
Let's take a closer look at why keeping your losses small is so crucial to your investment success…
Don’t let losses decimate your investment portfolio
Investing all comes down to making money. You invest in sh... ››› more
Earlier today, Stats SA released its consumer inflation data for January. The data showed that inflation eased sharply from December to January.
The main factor behind the drop in inflation was the lower fuel price.
Let's take a closer look at what the data showed…
Consumer inflation for January came in at 4.4%
Consumer inflation, as measured by the consumer price index (CPI), “... ››› more
Asset allocation is the process of splitting your investments amongst a number of different asset classes. For example, investing across a range of asset classes including shares, bonds, property, gold and cash.
Asset allocation reduces your overall investment risk and smooths out returns over the long-term.
If you've given asset allocation any thought, you may be wondering what the best spl... ››› more
As an investor, you want the market in a sustained upward trend (a bull market).
But there are periods when the stock market enters a bear market - the price of stocks starts to trend downwards.
So how can you tell if a bear market has arrived?
Read on to find out…
The best indicator of a bear market
The best indicator of the arrival of a bear market is seeing lower highs and l... ››› more
If you're looking for an investment strategy to help you build long-term wealth, the easier it is, the better.
And that's exactly what this investment strategy is. It's easy to follow and you only have to get to grips with one concept.
Read on to find out more about this investment strategy…
Focus on capital efficiency
This investment strategy involves focusing on capital efficien... ››› more
If you invest or are thinking about investing, you'll have various forces driving you. These may include building a nest egg, generating an income and growing your wealth.
Whatever your reasons for investing are, there are some factors you should always bear in mind.
Keep these rules at the forefront of all your investment decisions and you'll be a better and more successful investor as a re... ››› more
Rebalancing your portfolio is all about keeping the different types of assets you hold within certain percentages.
The idea behind this investment strategy is to reduce your portfolio risk by ensuring you don't let you portfolio get too heavy in certain assets.
But what about your returns? Rebalancing can limit your returns as by selling off assets that have grown in value, you can lose out ... ››› more
When you first invest, you should decide on what asset allocation you're going to stick to. For example, what percentage of your portfolio you'll hold in stocks and what percentage you'll hold in bonds.
Over time, the asset allocation of your portfolio will change as their underlying values rise and fall. So every now and then you need to rebalance your portfolio.
But what's the best way to ... ››› more
Stock markets the world over seem a bit all over the place at the moment. If you're watching every market move and worrying about the impact on your investments, it's time to give your portfolio the once over.
So how can you change the holdings in your portfolio to survive any stock market storm?
Read on to uncover an investment strategy to do just that…
The core principle at the hea... ››› more
The JSE's stock exchange news service (SENS) is a vital component of being a listed company. Through SENS, companies communicate to their shareholders and the market.
On SENS you'll see results, trading updates, news of potential buyouts, and much more.
So can what a company says through SENS give you hints about a business itself?
Read on to find out…
The importance of shareholde... ››› more
When you come across a seemingly good company with a share price that seems lower than it should be, before buying you need to check it's not a value trap.
So what should you do if a company looks great, but its share price seems abnormally low?
It could be a great investment opportunity, but it could be a value trap.
Read on to find out what you should do…
What is a value trap?
... ››› more
Chances are you'll have insurance for your house, your car and your life. This helps to protect you against the unknown.
But when it comes to your investment portfolio, what's the best form of insurance?
Unlike car and home insurance where you don't expect to make a profit, there is a form of investment insurance that could see you making some money.
So what is this form of investment in... ››› more
Investing can seem complicated. It's hard to know where to start off and what you can do to grow wealth over time.
But there are six overriding factors that will determine the value of your investment portfolio over the long-term.
It's these six factors that you should concentrate on to attain your long-term investment goals.
So what are these six factors?
Read on to find out…
... ››› more
At this time of year, many people embrace the fresh start, desperate to make and stick to a few resolutions.
Your investment portfolio should be no different. If you haven't made any resolutions for your portfolio so far, here are three to get your started.
They could make a big difference to the performance of your portfolio this year.
Read on to find out what they are…
Investme... ››› more
Yesterday, stocks on the Johannesburg Stock Exchange fell almost 4%. That's the JSE's worst fall in more than six-years.
When you own stocks, it can sometimes be a white knuckle ride.
So what's the best way to handle a crashing stock?
Here's what you should do…
What’s the best strategy to deal with a crashing stock?
When a stock you own starts heading south quickly, it’s n... ››› 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.