On 3 February 2020, I sent out an article:
WARNING: The deadliest threat to the JSE
At the time the JSE All Share Index was trading at 55,000…
I predicted that the index would drop to 50,405 in a couple of weeks…
Did you miss ANOTHER triple-digit gain this last week?
Those canny Pickpocket Traders didn’t - thi... ››› more
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
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
In the past 24 months the JSE All share index has been unable to lift itself out of its sideways channel.
In the last two years it only managed to deliver a 1% move for investors. The trading environment in the local market has been tough to say the least.
There has been a slew of socio-political upheavals, both internationally and locally, that have negatively affected the market.
With j... ››› more
Timon Rossolimos answers all your most important questions on trading for the week. This week's mailbag includes questions on Forex, stop losses, candlesticks, CFD contracts, Options and more.
Enjoy today's Q and A session…
To place a stop loss or not to place a stop loss?
“Is it necessary to place a stop loss if I watch my account closely from 9 ‘till 5?”
Ans... ››› more
I need to lay out two things on the table...
First, I am not qualified in cardiac health, vision or anything health related whatsoever.
And second, I am definitely not going to try and sell you anything.
However, I love family very much.
And just like you, I'll do anything it takes to help improve my family's quality of life where-ever I can.
And I know you have family, friends a... ››› more
The drought that's battering Southern Africa right now is going to wreak havoc on your pockets in the near future. South African corn farmers are expected to produce the lowest maize produce in 8 years.
The last time production numbers were this low was in 2008.
The numbers are concerning and it seems that South Africa will have to drastically increase the amount of maize it imports to 3.8... ››› more
Every year, between 1,500 and 2,000 miners apply for compensation from mining companies for lung diseases like silicosis and tuberculosis.
These diseases are direct a result of the mine workers coming into contact with dangerous chemicals in the mines.
In 2003, the gold mining industry promised that by 2013, there would be no new cases of silicosis among workers exposed for the first time ... ››› more
The JSE's performance over the last seven days has been dismal to say the least. It's down 3.22% and nobody seems to know when it's going to stop.
Every major sector on the JSE has decreased taking the shares down with it.
Financials - Down 1.53%
Resources - Decreased 1.79%
Industrials - Fell 1.12%
Gold mining - Tanked 4.12%
But despite this poor performance, there are opportunities... ››› more
Financial advisers are a dime a dozen in South Africa. Walk into any investment firm and you'll find them, sitting behind their fancy desks in their tailor-made suites and large offices crunching numbers.
They come across as bold and confident and in some cases; their knowledge of the investment environment can be intimidating. But just because a financial adviser looks like he knows what he's... ››› more
Anheuser-Busch InBev got conditional approval from the South African Competition Tribunal on Tuesday for its $100 billion acquisition of SABMIller (JSE:SAB) in South Africa.
The go-ahead didn't come without certain conditions though. The commission found that the deal raises several competition and public interest concerns and has moved to deal with these.
To ensure that South Africa doesn'... ››› more
Standard & Poor's and Fitch ratings agencies is expected to give their verdict on the country's rating by the end of this week.
The financial analysts at FSPInvest believe that a downgrade to junk status is inevitable. Even if this doesn't happen this month, it will happen before the end of 2016.
Here's what will happen to the economy and your investment portfolio if the downgrade does happ... ››› more
Last week, we published the kind of recommendation I prefer not to put into the public domain.
• First, it was a short-recommendation.
• Second it was a short-recommendation on an established, stable and, what most people would consider, blue-chip company.
• Third, it used a fairly advanced trading instrument that's often misunderstood by the general public.
But, in spite of these ... ››› more
In just a few hours turn R500 into R1,405
Discover the different instruments using gearing
Why I like CFD's to harness the power of gearing
The Forex Trader Team, recently sent out this trade to our Forex Trader subscribers: We told them to sell (go short) the Great British Pound to the Australian Dollar at $2.0288 and put their take profit level at 1.9920. Traders could have entered this tra... ››› more
Local furniture manufacturing may not be the most exciting sector on the JSE, but there is one furniture company bucking the trend. This company doesn't care if the South African consumer is “under pressure”. It doesn't care if South Africa's economic growth outlook is weak. In fact, shareholders were most likely celebrating in secret when they heard Pravin Gordhan was being investigated by th... ››› more
The South Africa Reserve Bank will announce its first interest rate decision for the year on Thursday.
In the build up to the announcement, many economists were expecting the Reserve Bank to leave interest rates unchanged.
In November last year the decision by the Reserve Bank brought the repo rate (the rate banks lend to one another) to 6.25% and the prime lending rate to 9.75%.
So what ... ››› more
Over the last three decades, the small-cap sector (which houses ‘penny shares') outperformed nearly every other market by a landslide.
In fact, if you had spread R10,000 across the entire small-cap universe in 1996, you would have turned it into R171,021.60 by 2015.
And since 1929, the average annual return on small-cap stocks has been 11.9%, according to Morningstar Ibbotson data on inter... ››› more
I recently wrote an article detailing the unstoppable global trends that have made many people billions of dollars throughout history.
Just to recap, the trends are energy (renewables), technology, war, healthcare and demographics.
I said that these trends have been at the centre of wealth creation since the dawn of time. And as we look towards the future, these trends will continue to gener... ››› more
If you want to invest in unit trusts, you'll soon find out that there are a large number out there to consider.
So where should you look to find out everything you need to know about a specific unit trust?
You need to look at its fact sheet…
What is a unit trust’s fact sheet?
All unit trusts have a fact sheet. As well as for unit trusts, you’ll also find fact sheet... ››› more
Every indicator and price chart you use, is based on one thing.
Past data. This can be a major problem when you trade.
Go to any chart. You'll see with every uptrend and downtrend on a chart, there is some kind of reversal point. The point where the trend is exhausted, which will now move in the opposite direction.
And no matter what you use, Stochastics, candlesticks, RSI, moving average... ››› 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.