We've all heard the expression to make money in the market you need to, “Buy low and sell high.”
Well today, I'm going to shatter that conventional wisdom and introduce you to one investor who managed to master the art of “buy high and sell higher”. And in doing so, become one of the world's greatest investors.
It was so effective, that his stock recommendation publication returned... ››› more
US markets closed at record highs on Friday, helped by technology stocks like Apple, Facebook and Google. The strength of the US markets is filtering through to other developed markets and the victory by Emmanuel Macron in the French elections eliminates one more hurdle. Improving global sentiment bodes well for the weeks ahead.
The rise in technology stocks is playing out nicely for our inve... ››› more
Local markets were slightly firmer across the board last week, assisted by some Rand weakness and better commodity prices. US markets were slightly softer, the UK rallied 1,8% while Europe was flat.
US economic data did not meet expectations, which has called the pace of continued rate hikes into question. The US dollar gave up ground against most major currency pairs. Political uncertainty re... ››› more
The JSE's Top40 index closed the first half of the year slightly positive at 0.8%. The Industrials were the leaders of the pack as the only major sector to rack up a positive return of 6.4% while resources were underwater by 9.6%.
The entire market has been propped up by a handful of top performing shares like Naspers, Richmont, BATS, BidCorp, Mondi and Capitec. The interesting thing to note i... ››› more
The Rand continued its slide last week as news emerged that Nationalising the Reserve Bank was discussed at the ANC conference.
Investors are not amused by the uncertainty the ruling party are creating, which is a recipe for further downgrades. And as mentioned in prior weeks, if our local currency and debt are downgraded we could see sustained Rand weakness. Bond yields would also spike as in... ››› more
Last week's interest rate cut of 25 basis points (0.25%) has boosted retailers and shares with high debt levels. Improving sentiment and the prospect of a boost to economic growth provided support for the Rand.
Earning season is in full swing, as of Friday, 19% of the companies in the S&P 500 had reported results for Q2 2017 and 73% had beaten earnings and sales expectations.
In the we... ››› more
The JSE's rally from late June accounts for all the growth we've seen this year.
The bullish tone is threatening a break above the trading range which has confined the market for more than three years.
As in common at this stage, small caps and midcaps have lagged significantly and we expect them to play catch up.
Mid-caps to consider include: MicroMega, Santova, AdvTech and AECI.
**... ››› more
Global markets have retreated over the past week as tensions rose on Trumps threats directed at North Korea.
Tensions will subside and global markets will continue their rallies on the back of positive earnings surprises.
The big earnings release for our market will be Tencent's (due to Nasper's stake in it) that will be released in the early hours of Wednesday.
All 32 major analysts tha... ››› more
While everyone was looking for clues as to the future of easy monetary policy, both Janet Yellen and Mario Draghi kept mum at Jackson Hole.
Both speeches were taken as more dovish, which implies accommodation to continue for longer. This has seen the Rand trade below R13 to the USD, the strongest level for August and the Euro trade at its strongest level against the USD in 30 months.
CPI c... ››› more
The major news is today's GDP growth figure for the 2nd quarter. The print should come out at 2.6% and signal a short-lived recession.
The Rand's strength was given a boost after poor jobs numbers out from the US on Friday, but has started consolidating around R12.95. We believe clients should use the current strength to allocate an appropriate portion of assets to offshore markets. - Contact ... ››› more
We had a good week for our short-term trades.
• Sasol for a 6.71% gain
• Vodacom for 10.33% gain
• Sibanye for a 30%
All ungeared, see position updates below.
Paying too much for your retirement savings?
The weekend press has again highlighted the impact of costs your retirement savings. Most older policy are paying the industry norm of 3% and higher. It’s a littl... ››› more
To think, last year I gave a target for Bitcoin going from $500 to $800.
And today we're looking at Bitcoin at $4,200!
And for the last eight days Bitcoin has “crashed” 12%.
Investors and traders are feeling the pressure and are worried it's a bubble waiting to pop.
But I'm grinning and ignoring the sentiment.
In fact, I'm nearly ready to pile into Bitcoin and hold to its new all-... ››› more
This might be the most important week for determining the market direction for the rest of the year, we have:
• A Fed announcement on their tapering on Wednesday
• A SARB announcement on interest rates om Thursday
• Futures closeout on Thursday
The market is expecting (with a 98.6% probability) the Fed to not pull the trigger on an additional rate hike. On the flip side, local inte... ››› more
The entire investment community will be watching the Jackson Hole Symposium this week.
Starting on Thursday and lasting three days, investors will look for ques from Janet Yellen and Mario Draghi to see how and when the easy monetary policies (quantitative easing) will end.
With Inflation as low as it is, they could indicate a more aggressive conclusion to all the stimulus the markets have... ››› more
US interest rates on the rise.
Fed Chair Janet Yellen provided testimony last week indicating a high likelihood of another US interest rate hike in March. The markets are now pricing in a 0,25% hike. The US dollar is strengthening again.
Local markets were flat over the week. The All Share squeezed out a gain of 0,1%, Resources were similar and Industrials down marginally (0,5%), Fin... ››› 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
The state of our nation
A strong rally on Friday reversed losses on the JSE and helped the Top 40 close the week up 0,75%. Financials gained 2% while Industrials and Resources were marginally higher.
Markets continued to respond positively to the Trump administration's rhetoric, particularly regarding lower taxes. Data from China and Japan supported the market rally. The Nikkei rose 2,5% a... ››› more
Last week's sentiment remained positive and markets continued their rally. President Trump's first days in office are being closely monitored and provide plenty for traders to digest.
The JSE Top 40 closed the week up 0,8%, but retreated slightly on Friday along with generally softer developed markets; for the year to date the JSE is up 7,7%.
Kumba rallied 27% after it provided a product... ››› more
Trump in the White House - America First!
As President Trump was being inaugurated the markets appeared to be waiting for direction. The JSE closed slightly lower, down 0,6% and the major developed markets were little changed if not slightly softer. Currency and Commodity also appear to be in a holding pattern.
Trump's speech was direct and unambiguous, watch-out as America puts its foot... ››› more
Last week, we discussed how through one simple switch we managed to save our clients a cumulative 71% in 2016.
But this year we're going to try and do it again. So let's compare the investment cases of The Foschini Group (TFG) and Woolworths (WHL).
These companies share similarities in that they're both involved in apparel retailing in South Africa but have very different strategies when i... ››› more
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We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found on this website.
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 website.