For years now the Crypto asset space has been marred by companies like MIT, MMM Global and more. While there was nothing wrong with the asset class as such - the industry was like the wild west.
Until recently when there was a crypto scam, or investors were defrauded there was basically nothing to be done.
The SARB said that it did not regulate crypto currencies, and investors should conta... ››› more
Last week was crazy for all sorts of reasons…
Bitcoin hit $16,000 - the highest level since 2018.
The JSE rallied over 7%.
Covid-19 cases spiked in the US and Europe forcing new lockdown measures.
However, the main focus on everybody's mind was the highly anticipated US elections on Tuesday.
Although the election may still be contested (due to Trump's legal challenges), there... ››› more
Q. “Timon you were right about the delay in the voting in the USA, due to the counting of hand mail.
But now the big question is.
What can we expect with the US stock markets, with Joe Biden becoming the next American President?”
A. I did some research on the weekend. When I went to back-test the US stock markets over the last 23 election years, what I found might surprise ... ››› more
The only thing on investors' minds right now is the US election.
At the time of writing the final votes have yet to be tallied. Right now, many battleground states are still up for grabs, with Pennsylvania looking like the key to victory.
Trump has already claimed the win and approached the courts filing multiple lawsuits in most of the swing states. He's demanded a recount in Wisconsin. A... ››› more
Q. “Hi Timon, with the gemors going on in South Africa, I really want to just be able to trade overseas. Could you please tell me how I can open an offshore trading account, how much money I'll need and which brokers are the easiest to trade with?”
A. I fully understand where you’re coming from.
It’s not safe anymore to keep your money in just one place – especiall... ››› more
Right now everyone's talking about the US presidential elections. While the US president doesn't directly affect us - what happens to the US economy affects the entire world. So, there's definitely some merit in keeping an eye on the Americans…
Similarly - in 2021 we'll have local government elections again in SA as well.
So how do elections affect the stock market? And is there anything... ››› more
Have you heard of SaaS?
Well, SaaS forms part of the growing Cloud Computing industry. And over the past two decades, it's grown exponentially!
Just consider in the 2000's, just 12% of businesses were making use of it.
But thanks to the growth of the internet, the SaaS market has exploded with more than 73% of all businesses using it today!
And it's thanks to this rapid adoption, t... ››› more
I bought my first shares in the midst of the 2008 financial crisis.
My first buy was Old Mutual shares, and the price rose by more than 211% in the 18 months following my buy…
I rolled some of my returns into a property company, and an industrial stock - in the end I turned a couple thousand rand as a student into enough money to pay for my studies, put down a deposit on my first propert... ››› more
A bear market refers to a widespread decline in asset prices of at least 20%.
We've seen stock markets fall 20% and more in recent months. The oil price fell through the floor, and unemployment is soaring.
This is not a fun time to be in, and you might be confused, panicked or just blown away.
The good news is, this is only a phase - and it will also pass. Things will turn around and l... ››› more
“I am trying to wrap my mind around the spot and the futures market. Could you please clarify between the two and what the differences are between them?”
A. There are two different types of markets when it comes to trading – the spot and futures market.
The spot market or cash market is a public financial market in which the actual financial instrument is... ››› more
***What's a circuit Breaker?
Q. Circuit Breakers? This is a new term that I've been seeing on Bloomberg lately. Could you explain what it means and does it apply to the JSE as well?
A. A circuit breaker is a safety device which stops the flow of electricity by switching itself off, if anything goes wrong.
The same applies in the financial world…
A circuit brea... ››› more
Q. Timon I have an issue with my strategy… I follow a simple Moving Average trading system. With the current lockdown, I have a lot more time on my hands to trade in a week.
My problem is that my system sometimes doesn't even line up one trade in a week.
Can you tell me a few tips I can use to help me increase the number of trades I take per week?
A. I understand it can be ra... ››› more
Lots of people think of gold as a hedge against uncertainty. And that's usually the case.
But over the past two weeks, something odd happened in the gold market…
From 9 March to 19 March, the dollar gold price fell from $1,679 to $1,472.
If gold is the ultimate hedge against uncertainty, why then, did it fall double digits (over 12%) in less than two weeks?
... ››› more
Over the last seven days, the crypto market shed around half of its value.
With the entire market cap dropping from $220 billion to $120 billion in less than 24 hours.
Most of the major crypto-currencies dropped 20%, 30% or even more
And surprising enough, these massive price swings weren't crypto related at all.
Here are the real reasons why most crypto-currencies crashed last week... ››› more
When market uncertainty is prevalent (like it is right now in South Africa), investing in this asset helps fund managers combat the triple portfolio threat of risk, volatility and losses.
And what's more important than making money?
Not losing it!
So how exactly does it do this?
A Guaranteed Income Booster You simply Can't Igno... ››› more
Winston Churchill famously said:
“A pessimist sees the difficulty in every opportunity, an optimist sees the opportunity in every difficulty.”
I love that saying. Except today I'm changing it just a little:
“A pessimist sees the difficulty in every opportunity, an investor sees the opportunity in every difficulty.”
And that's what my piece is about this week.
Br... ››› more
Yesterday marked the worst day for global markets since the 2008 financial crisis. This is on the back of the collapse in oil prices, down over 30% at one point, as Saudi Arabia notified its clients that it will sell oil at reduced prices from 1 April 2020. This is to protect its market share while demand is low.
This is effectively the second black swan to hit the market after the corona viru... ››› more
This coronavirus is getting out of control!
And markets couldn't care less…
The S&P500 is at record highs.
Chinese shares have bounced almost 8% from their lows.
And yet, every indication is, we're facing massive real-world consequences after the Chinese authorities continue to quarantine tens of millions of Chinese workers.
It's no wonder markets are pushing higher however a... ››› more
Q. "When it comes to Red Hot Storm Trader, what is the criteria you use to find the perfect markets to trade?"
A. In short, I look for the highest volume traded stocks on the JSE.
To find these stocks, I have a simple yet effective 2-criteria checklist.
Market cap needs to exceed over 20 billion
The market capitalisation is equal to the total number o... ››› more
Happy New Year and welcome to 2020.
The last time we entered a new decade, the world was recovering from the 08/09 Financial Crisis.
Since then, the US stock market has repeatedly hit new all-time highs (despite some bumps in the road).
And while we know the turning point in the cycle could be around the corner… we have to remember…
... ››› more
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