Last year Jack Ma, the Alibaba Founder, gave a speech where he uttered a couple of very minor criticisms of the Chinese economic system. At the time of the speech, he was one of the richest and most famous people in China.
In addition, Alibaba was one of the largest companies not just in China, but the world. If that wasn't enough, he was set to list another giant, the Ant Group, which was the ... ››› more
You may have heard of the Butterfly Effect.
Chaos theory predicts it is possible for the flap of a butterfly's wing in China to cause a hurricane in the US. Though this sounds like fantasy, we may actually be witnessing one of the greatest “butterfly effects” in history.
A little while ago, likely in 2019, a single virus particle made a jump from bats to humans. In terms of scale, this... ››› more
Yesterday saw markets react decisively to the risk of COVID-19 to global growth. With most markets pulling back over 3%. This is due to an acceleration of new infections outside of China. It has hit Europe as Italy reports the 7th death and puts the town of Cologna on lock down, with others in the Lombardy region of northern Italy (a manufacturing hub) on unofficial lockdown.
The cause for ala... ››› more
China is in chaos.
The Coronavirus has just about brought the world's second largest economy to a standstill.
As a nation, the Chinese have been restricted to their homes. The government has cancelled flights… Shut down cities… And tragically nearly 500 people have already lost their lives!
It's a disastrous social crisis, and one which has roiled global markets.
On the economi... ››› more
This is not a drill…
The deadly coronavirus has not only claimed over 170 lives at last count and infected 1000s, it's also had a major impact on world stock markets and economies.
Investors are selling off their positions in equities, and seeking out alternatives like gold, platinum and bonds which have little effect on world markets.
And it looks like we are ... ››› more
Crazy to think we are near the end of January, and already I'm seeing green signals flashing on my screen.
In fact, the main sector that is showing major upside to come is in resources.
It looks like resources will be the trading and investment darling for 2020.
And what better way to start than with a strong prediction with the leader of all resources - GOLD.
Today I'm going to re... ››› more
Sometimes taking a contrarian view of a market or investment, can pay off big time…
One of my all-time favourite investors, Benjamin Graham, proved this nearly 100 years - during the Great Depression.
When stocks crashed nearly 70%, Benjamin Graham didn't give up and avoid the stock market.
In fact, he saw this as a perfect opportunity to make money by pinpointing bargain stocks from... ››› more
I don't know if you noticed, but last weekend, bitcoin's price soared from around $7,500 to over $9,600 - a +28% gain!
Many cryptocurrency market analysts pointed to comments made by China's president President Xi Jinping that the country should "seize the opportunity" of bitcoin's blockchain technology, as the reason behind bitcoin's sudden rally.
You see, China banned bitcoin and cryptoc... ››› more
The US-China trade war just might be the catalyst that will send America into its next great recession.
But I don't worry about that because there is always a profit opportunity that will follow…
In fact, there is one indicator that shows a major 20% crash for the S&P 500 is likely, thanks to this impending recession.
Let me explain why the S&P will fall...
Th... ››› more
Trump may have imposed 100s of billions of dollars on tariffs in the US China trade war and it seems he isn't about to stop there…
In fact, the trade war could escalate to a new level of madness where we see the US delist a number of Chinese companies from the US stock exchanges.
Just to put it into perspective, in February, as per government data, there were 156 companies that traded on... ››› more
Markets have been incredibly skittish over the last week.
And, while there are many reasons for concern, one of the main issues driving share prices lower is fear over the “inverted yield curve”.
If you skim the financial news, you'll see headlines like:
“Yield curve inversion hammers US small banks”
“Bond market yield curve inverts, signalling Fed may be too slow to cut... ››› more
The ongoing trade war between the US and China escalated last week when President Trump said they would initiate another 10% tariff hike on Chinese imports worth $300 billion effective 1 September 2019.
Since then, we have seen a huge drop - over 5% on the S&P500, Dow Jones, Yuan currency and even the JSE.
Investors are becoming really worried about global stability and it's driving them ... ››› more
The quote above is what Jehan Chu, managing partner at blockchain investment and advisory firm Kenetic Capital in Hong Kong, recently said about Bitcoin.
What made him say this?
Well, last week Donald Trump continued his ‘tariff tantrum' by adding 10% tariffs on another $300 billion in Chinese imports, starting 1 September.
China retaliated by asking state buyers to halt American ag... ››› more
When Facebook announced plans to launch its new digital currency Libra, it was met with fear…Especially in China.
When questioned on Facebook's Libra at a press conference, the founder and CEO of Huawei hit back saying,
“China can also issue such a [crypto]currency by itself. Why wait for others to issue it? The power of a country is always stronger than an Internet company.”
The ... ››› more
We are already in July 2019 and in the last six months, we've seen the SP500 index rise 17% for the first time since 1997.
With the truce agreement between the US and China that took place at the G20 summit, the rumours about the FED cutting interest rates and the index breaking above the psychological 3,000 level - It looks like we are in for a very profitable ride with the SP500.
But, ... ››› more
On 28 May 2019, roughly $16 billion flowed into one stock market.
Did you hear about this in the financial news?
These days, investors have been glued to the trade-war news, which has caused major uncertainty around global growth and stock markets to fall.
But this $16 billion cash injection is a huge story. One that I’ve covered in Real Wealth since 2017.
... ››› more
The US/China trade war has continued to escalate as President Trump tries to lock in a victory ahead of next year's presidential elections.
Huawei, the Chinese smartphone maker, is the most recent target of his attacks. The company uses Google's Android operating system for its phones and due to US sanctions, it is likely that Google will be prevented from doing business with the company.
... ››› more
Electric cars have been the only answer to reducing the world's dependence on oil and reducing carbon emissions.
China specifically has led the charge in electric car sales in an effort to reduce its smog ridden cities.
This has seen electric car sales in China surpass 1 million cars a year.
Expectations are that China alone will sell more than 1.8 million electric cars in 2019 - but t... ››› more
Let's just get it out of the way immediately, Naspers is a great company.
It really is.
I am in no way a Naspers bear. But I am a cautious bull.
I do not, for one second, think Naspers will pull a Steinhoff, Mediclinic, Aspen, Tongaat, [insert other JSE listed entity] on us anytime soon.
But I am still underweight on the stock for some very fundamental investment reasons. And, given t... ››› more
Did you know in 2000, just 4% of China's urban population was considered middle class?
Did you know by 2012, that number soared to 68%?
To put that into perspective…
In 2000, around 5 million people in China were consider middle class.
More than a decade later, around 230 million people in China are now considered middle class.
But here's where it gets even more interesting…... ››› more
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