We all like to make a lot of money. It's human nature.
Take investing for example…
People tend to invest most of their money into stocks. Why?
Because stocks are usually the best place to put your money for the highest and fastest growth.
But by doing this, investors sometimes ignore or underestimate the importance of income investing.
Here's what I mean…
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It's no secret that US stocks are flying.
Even if there's a small correction, share prices always seem to bounce back and keep going higher.
In fact, US stocks have gone up for almost 10 years now - without a losing year. This has led many people to think that they're extremely expensive.
But what if I told you US stocks are actually cheap?
You'd probably be surprised and call me crazy. ... ››› more
The producer price index, non-farm payrolls, new housing starts, gross domestic product….
The list of economic indicators released monthly is massive.
The South African Reserve Bank alone releases a four-page report with more than 110 different economic indicators each month. That's not even considering international indicators.
So, which of these indicators should you keep an eye on, a... ››› more
From 2013 to 2015, South Africa's listed property sector has achieved a 17% annual average return.
Over the same period, that's:
Five times more than what SA bonds returned
Three times more than what SA cash returned
3% better return than what SA equities has achieved
But the many investors who allocated a large portion of their wealth into listed property in 201... ››› more
These days, investing for attractive income returns is extremely hard to come by.
Money market funds at most pay you 7.3%.
The average share on the JSE is only paying investors around 2.9% in dividends per year.
And once you factor in inflation, you're basically getting nothing!
But there is a way, you can invest for income and receive a return…
That beats every money market ... ››› more
You have to go back more than 400 years where the first major “asset bubble” happened.
Between November 1636 and May 1637, tulip prices soared 20-fold, before plunging 99%.
Then from January 1720 to June, the second major asset bubble occurred also known as the South Sea Bubble.
Shares from UK-based South Sea company surged more than eight-fold from £128 to £1,050, before collapsing... ››› more
Do you walk into a room full of investors and struggle to understand what's going on around you?
Are you lost in the jargon and anxious that someone is going to ask you a question, you just can't answer?
Well, if that sounds like you then I have some good news.
You don't need to play second fiddle to your investment advisor, your broker or even your smarty-pants friends. You don't need t... ››› more
Wouldn't it be a nice for a change, to see consistent income flowing in your account instead of out?
I'm talking about the kind of income that could help you:
• Pay off debts
• Supercharge your retirement
• Build the wealth you need to live the lifestyle you want
Basically do whatever you want, when you want - with no money worries. The kind of income that comes streaming in no m... ››› more
The other day, while making my morning coffee, a work colleague asked me about an opportunity to earn an 11.5% return on a fixed-term bond investment.
And she wasn't talking about RSA Government Retail Bonds. She was talking about investing in a Participation Bond Fund, specifically the FedGroup Participation Bond Fund.
When you invest in a Participation Bond Fund, money is pooled with oth... ››› more
You already know that rumours of a recession are circulating around the investment markets.
2016 has been a tough year for the South African economy and the hard times don't look like they're going to stop any time soon.
Statistics South Africa shows that the economy is already down 1.2% for the year. We're in the middle of a drought and the price of food, electricity and water is steadily... ››› more
It's simple, lending money to government is a guaranteed income bearing investment.
Most investors fail to recognise the value in this form of investing. Yet, it's hugely important if you want to bank more than just capital profits on your investments.
If you lend money to someone, you want to know that you're lending it to a person who can pay it back, along with the interest you charge.
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If you think that you're too broke to start investing your money, then you've been misinformed. It is possible to start growing your wealth with as little as R500 ever single month.
Despite what most people think, you don't have to have millions in the bank to invest your money. There are exciting new platforms that you can use to invest with as little as R100.
Of course, R100 gives you ve... ››› more
What do you do when you get money back from SARS?
I bet you celebrate by going out and spending it. After all, its money you never had, which means you can splurge on things you want, right?
Today, I'm going to tell you what you should actually do with your SARS refund.
And don't worry, this isn't about shoving it under your mattress for a rainy day. I'm going to show you how y... ››› more
On Tuesday, the World Bank announced it cut South Africa's economic growth forecast to 0.8% in 2016. Followed by the words, “The economy is flirting with stagnation if not recession”.
What's more is, the World Bank's economic outlook for South Africa is in line with the IMF's - which estimates economic growth rate to reach 0.7%.
The bottom line is your investments are at risk.
So, if ... ››› more
One popular and successful investment strategy is momentum investing. This involves investing in shares that are soaring in value, making the most of the current trend.
Yet there are some investors who take the opposite approach to investing. This involves investing in shares that have dropped greatly in value and buying bonds downgraded to junk status.
So is this fallen angels' investment s... ››› more
There are three main credit ratings agencies which hold a lot of clout with their ratings. These are Moody's, Standard & Poor's and Fitch.
As well as providing other ratings, these agencies give ratings for bonds.
So how do these bond credit ratings work?
Let's take a closer look…
The main categories of bond credit ratings
There are two main categories that bonds fall i... ››› more
For some investors, the idea of putting a large proportion of their investment money in equity unit trusts doesn't appeal. This is usually due to the higher risks associated with investing in shares.
As well as using unit trusts to invest in shares, you can also invest in unit trusts focusing on bonds.
So how should you go about deciding how to split your unit trusts between shares and bonds... ››› more
Financial planning involves all aspects of dealing with your money now and into the future.
It's vital to have short-term, medium-term and long-term goals as part of your financial planning strategy. To meet some of these goals, you may need to look at savings vehicles to help you get there.
So are government retail bonds worth considering?
Let's take a closer look…
What are gover... ››› more
When the stock market goes through a bear market, one asset class that tends to perform is bonds.
During bear markets, high quality bonds perform well. And this has been the case for the vast majority of bear markets over the past 100 years.
So how can you invest in in bonds? And what's the best way to go about it?
Read on to find out…
How to invest in bonds
If the stock marke... ››› more
If you're looking for a long-term savings vehicle, government retail bonds are definitely worth considering.
So how do government retail bonds work? What are your options? What are the tax implications? And how can you make the most of them?
To discover the answers to these questions and much more, read on…
The ins and outs of government retail bonds
Government retail bonds, or RS... ››› 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.