The JSE is down 3.95% for the past three months, 5.13% in the past six and we're only up 8% over the past three years.
With politics the way they are and the performance of the South African economy many investors are asking whether they should bail on SA listed stocks for good.
I'll give you my take on the situation now, let's first have a look at the facts:
SA’s economy is already... ››› more
The platinum price has been depressed for a couple of years because of high surpluses on the back of mining and recycling of the metal putting more of it in the system than is being bought up by investors and producers.
But 2019 saw this take a turn.
Platinum demand for 2019 is already up significantly. Full year forecasts puts the metal's demand at 8,045 koz, compared to the 2018 figure o... ››› more
Right now there's one sector I'm particularly excited about on the JSE.
I recently banked a 150%+ gain from a share in less than 4 months in this sector, and I believe it has only started running.
I'm talking about Gold…
And while the shiny metal itself has delivered investors very good returns over the years, right now gold miners are in an even better position to profit.
Let me... ››› more
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
JSE listed stocks are selling at their cheapest levels in a decade.
And that's created an opportunity for internationally listed, and private equity companies to make a mint.
You see, these companies borrow money internationally at 3%, 4% or 5% interest. They then buy these South African companies that are selling cheaply and the dividends they receive from them are enough to repay their b... ››› more
The latest release from StatsSA showed that South Africa's economy grew 3.1% for the second quarter of 2019.
This was better than the 2.5% expected by most economists, and it's a good sign for South African's who were worried about recession hitting.
Unfortunately, this growth doesn't necessarily mean our economy is growing again…
With first quarter GDP shrinking 3.2%, 3.1% growth do... ››› more
A couple of years ago Sasol announced it would enter the US market by building an ‘ethane cracker'. A massive petrochemicals plant called Lake Charles that would require it to invest nearly as much as its market cap was at the time.
The company said this was where its future lay, and the project would change the face of the company forever.
Right now however Sasol shares are at their low... ››› more
I'm sure you've heard of portfolio rebalancing. Almost every investor does it.
It's a simple, but extremely important ‘tool' where an investor periodically buys or sells different assets (stocks, bonds, etc) within a portfolio.
Rebalancing helps reduce the risk an investor suffers from the changes in returns of various investments. And it also helps ‘restore' their desired asset allocatio... ››› more
The World Economic Forum (WEF) on Africa 2019 is currently taking place in Cape Town. During this three-day event, our most senior politicians will be out in full force to convince the international community South Africa remains investable.
They'll discuss lofty matters such as the 4th Industrial Revolution (4IR), sustainability, digitalisation and stability. And, if history is any indication... ››› more
Sometimes the stock market behaves inexplicably.
Quality companies trade at unbelievable discounts. Or they sell at prices so high that you might flinch.
What makes this difficult to muster is the fact that these ‘discrepancies' tend to keep going on for much longer than you'd think possible.
One such share was Curro Holdings.
The company listed in July 2011 and investors could p... ››› more
The rand is at R15.37 to the dollar - the weakest we've seen since the Zuma era. We can blame this on NHI, EWC or a string of other three lettered government policies that aren't business friendly.
But at the end of the day the whole world is running scared right now.
Thanks to the US trade war, negative bond yields in many European countries and increasing world debt.
In fact, for t... ››› more
By definition, Penny Stocks trade at R10 or less and they're typically small companies with big growth potential.
These investments are attractive because small share price moves translate into large percentage gains - or losses if you pick the wrong stock. In short, these are volatile investments, so you're advised to use caution.
But if you're looking for one of these top penny stock com... ››› more
In June 2019 I told readers that gold is headed higher… Back then I had a longer term target of $1,900 in mind.
Today, the gold price is already $100 higher than it was back then.
The rand is also weaker - leading to a rand gold price of more than R750,000/kg. That is R110,000 per kilo more than it was in June...
Gold has suddenly become so bullish that Goldman Sachs just upgraded it... ››› more
It's all over the news…
“Why SA is on the verge of an IMF bailout” - Business Live
“Is an IMF bailout for SA imminent” - News 24
“Does SA need help from the IMF?” - eNCA
Prominent billionaire and business man, Johann Rupert has even suggested this. According to a Business Live report Rupert said an IMF bailout is “a serious possibility”, while Paul Harris, one of ... ››› more
As Winston Churchill once said “Never let a good crisis go to waste”, we believe investors should be ensuring they have enough exposure to offshore assets that will be a hedge against a “deeper crisis” and should be slowly buying depressed local assets if they have cash on hand. Most investors have been sitting on the sidelines not fully exposed to equities
You can't blame local invest... ››› more
On 26 July 2019 the SA government's National Assembly pushed forward with expropriation without compensation plans. It established a committee to introduce legislation for amending our constitution. The recommendation was that the expropriation bill should be passed speedily to replace the existing 1975 apartheid-era expropriation act.
So, what does this mean for South African investors like y... ››› more
Ever heard of the Martingale Staking System'?
It is a simple betting system that originated in 18th century France.
It required the gambler to double their bet after every loss so the first win would recover all previous losses and end up with a profit equal to the original stake.
The theory suggests that if you had infinite time and wealth, the probability of eventually winning become... ››› more
Landing winning stocks doesn't have to mean investing in small, high-risk operations. Even big companies offer the potential of rich returns over time. But some small businesses will turn into tomorrow's biggest winners and create massive wealth for investors that got in at the right time.
Small-cap stocks, or the penny shares we invest in, are generally companies with market caps of less than... ››› more
There are 275 dividend paying shares in the JSE today. They average a dividend pay-out of 3.88%.
While a 3.88% dividend is surely better than nothing - this doesn't even cover the interest you'd have received on your cash with a fixed deposit.
And, once that money is paid out by a company the money is lost to it forever.
But what if I told you there's a better option - a company that d... ››› more
Gold's been a form of money, an investment and a store of value for almost as long as modern day man has walked the earth.
Some argue gold is a barbaric relic that no longer holds the monetary qualities of the past. They say paper currency, or electronic currencies such as Bitcoin, are the assets of choice.
But the fact remains that gold has been a very stable appreciating asset for centur... ››› 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.