If you've ever watched The Big Short, chances are you know who Michael Burry is. He's the guy who figured out a bubble was forming in the US housing markets pre-2008. He also correctly predicted a market crash would ensue and made a ton of money shorting the housing market.
This week, he noted there are correlations between the bubble which formed in the housing market and Exchange Traded Fund... ››› more
Over the past 10 years, the South African listed property sector has easily outperformed its peers.
Investors who've jumped on this rally early, would have made a fortune investing in JSE property companies.
But the smooth-sailing returns delivered by the commercial property market are coming to an end.
You see, listed property returns have halved for the last three years - 25.1% in 2... ››› more
Have you ever heard of the saying, “Those who do not remember the past, are condemned to repeat it?”
Well, humans can learn valuable lessons by looking back at historical events, but choose not to.
And in many cases, we tend to repeat history and make the same mistakes.
Think about how many financial decisions we've made that ended up in economic disaster.
For example, the deci... ››› 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
Over 400 years ago in 1593, tulips were brought in from Turkey and introduced to the Dutch.
Because they were unique, tulips were desired by the Dutch people, which made them fairly expensive.
One day, the flower contracted a non-fatal virus called mosaic. Mosaic didn't kill the tulips but caused different colours to appear on the petals, which increased their rarity and value.
Because of... ››› more
In 2013 I warned investors that African Bank's drop in profits was the first ‘symptom' of a slow puncture for the South African Debt Bubble…
I told investors I believed many of the unsecured lenders and credit retailers will get themselves into trouble, but Capitec would prevail.
At the time African Bank traded at R22 a share.
By early July 2014 I called African Bank's imminent bankrupt... ››› more
Mention the word “bubble” and many investors head for the hills.
But who can blame them?
After all, economic bubbles like the dot.com and the mortgage bubble caused many investors to lose a fortune.
In case you forgot, a bubble happens when investors drive shares prices way beyond the actual value.
Eventually prices start to get out of control climbing to unsustainable levels an... ››› more
One question I always hear investors ask is ‘What area must I invest in?'
Recently I've had many people ask whether newly developing areas such as Waterfall City and Dainfern are good areas to invest in. Others want to know if it's too late to invest in Cape Town's fastest growing areas.
But in my opinion it's not so much where you invest but what you invest in.
You see, currently all t... ››› more
On 27 November 2013 I wrote an article saying.
. “Gold is definitely not your safe haven in South Africa”.
I told you that a sideways range had formed between (3,282 and 1,376), and the next target was for the JSE-GOLD index to drop to 800…
And that’s exactly the level it hit last month. But just because it hit that level, doesn’t mean you should just buy gold now b... ››› more
Good morning traders!
I trust you had a fantastic week trading the markets.
I'm over talking about Greece and I'm sure you are too. If you do want to know, you can go look at last weeks' articles on the crisis.
And with China… Well let's just say in the last 21 days the stock market crashed 30%. The countries small cap exchange alone is down 42%. That's $3 trillion! Compared to Greece's ... ››› more
This week, markets in China have continued to fall. This led the country's stock market regulator to impose a ban on large shareholders selling shares for the next six months.
So what's behind the collapse of Chinese stocks? The markets are down 30% in a month.
Read on to find out…
The stock markets in China have soared over the past year
Over the past year, markets in China have ... ››› more
“Stop with the bad news!”
That's the first thing I thought about today when I put finger to keyboard.
Unfortunately, though, you need to keep in the loop with what's going on with China's stock market crash. It will have an effect on your trading results.
You see, early on Wednesday, more than 1200 listed Chinese stocks halted. This means well over 40% of the stocks listed in the enti... ››› more
My friend Yianni phoned me on Thursday morning. He was beyond excited to tell me that he found a ‘dream fund' that returns 17% a year.
I told Yianni I've been looking to invest a portion of my money in a fund that offers those kinds of returns. But before excitement filled my veins, I asked him some crucial questions.
Let's just say after he heard what I had to say, he probably saved hims... ››› more
Since the mid-1970s, the Organization of the Petroleum Exporting Countries (OPEC) has controlled the price of oil... Cutting production when it got too low and opening up the floodgates when the price got too high.
That's what the world expects OPEC to do. That's what OPEC has always done.
But for once OPEC is defying all logic…
OPEC's seemingly illogical move will send the oil price... ››› more
These days, with markets around the world at all-time highs, investors often ask me whether you should wait for a pull back before investing, or should you just climb in?
The concerns about diving into the markets at these high levels are totally understandable. After all, no one want's to be the one who bought the market at the top, just before it collapsed.
Already some investors are call... ››› more
The financial press can be quick to label certain sectors of the market as bubbles. You'll probably be familiar with the dotcom bubble for instance. But what exactly are market bubbles? Read on to find out what you need to know about market bubbles…
A speculative bubble describes a market that had been puffed up to levels far beyond what can be justified by the fundamentals, David Thornton in ... ››› more
Bitcoin has been in the news a lot lately. But few people really have a solid grasp on this ground-breaking digital currency. What many people do know is its price has varied greatly over the past few months. Such large, rapid gains - as well as the currency's volatility - have made Bitcoin a hot topic on financial news channels, websites, and publications. But despite all the attention, Bitcoin r... ››› more
For as long as the stock market and charts have been around, using just one line, you would've been able to see where the market was going.
With this line, you could have prevented yourself from being caught up in the dot com bubble, and in the financial crisis.
You'll also be able to protect yourself from any other financial crashes which are bound to hit the market in the near future.
... ››› more
When it comes to beauty, we all have our different tastes.
But today there is one lady who has millions of traders and investors around the world falling in love with her.
Now she's not what you might expect…
She's not a poster pin-up that you'd find on a teenage boy's bedroom wall. She's not an actress,
musician or model.
Heck, she's already 67 years old.
So what's so alluring... ››› more
Earlier today, three American economists won the Nobel Prize for Economic Sciences. Their contributions to how asset pricing works in the modern economy is now marked in history. Let's take a closer look at what led these three economists to gain the reward...
The Nobel Prize for economic sciences went to “three American scientists” for their work improving the “forecasting of long-term as... ››› more
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