Q. “Hi Timon, I read the weekly article where you expect the JSE ALSI40 to rally.
My question is, if Moody's does eventually decide to downgrade South Africa to junk what would happen and when is the next grading?”
A. The next possible downgrading for South Africa would happen as soon as March, if South Africa fails to come up with a plan with “Credible debt-stabilisation”.
... ››› more
We all know how ‘Black Friday' sees the most incredible deals in shops every year…
These deals are typically 30%, 40% and 50% discount on everything you buy.
In the same way I foresee great ‘Black Friday' specials on the JSE this year.
What am I talking about?
Well, since 2018 there have been around 35 companies delisted from the JSE. Around 10% of all the small cap shares on... ››› more
I'm talking about Platinum.
This precious metal has been in a depressed state for the past 10 years.
In fact, from 2008, the platinum price crashed from its peak at $2,308 down to a low of $780.
And since then we've seen it move in a sideways-downward range.
But in 2019, we've seen a major turn where the platinum price has finally broken out of this downward trend.
Today we... ››› more
In 2019 alone there have been 19 shares delisted from the JSE.
Not because they're bankrupt…
Or have violated regulations
Or just because it's too costly
No…
They are companies that were selling for WAY less than what they were worth.
Companies that have been grabbed up by astute investors, companies and funds that know the profits they make are worth a lot more than t... ››› more
In what was one of the largest 24-hour market sell-offs this year, over $30 billion was dumped from crypto assets.
At one stage, the largest crypto, bitcoin, was down around 20% as its price crashed to a three-month low of just over $7,800.
While, many predicted a huge drop to around $8,000, it was still quite a shock to see it happen.
So what caused the crash and what should crypto in... ››› more
Right now there's one sector I'm particularly excited about on the JSE.
I recently banked a 150%+ gain from a share in less than 4 months in this sector, and I believe it has only started running.
I'm talking about Gold…
And while the shiny metal itself has delivered investors very good returns over the years, right now gold miners are in an even better position to profit.
Let me... ››› more
Q. “My question is really basic and so please bear with me… I have been wanting to invest in shares for the last three years and I would very much like to receive dividends as a passive income. Could you please explain what dividends are exactly and why a company would pay dividends to shareholders?”
A. I am always happy to answer these questions, because we all have to start somewhere w... ››› more
The hunt for yield and aversion to risk is causing something we have never seen before.
Interest rates and bond yields are falling globally and have turned negative. You can get a home loan in Denmark at an interest rate of -0.50% per year fixed for 10 years. While we are still far away from that with real rates in positive territory, investors must be tactical in deploying capital.
... ››› more
A couple of years ago Sasol announced it would enter the US market by building an ‘ethane cracker'. A massive petrochemicals plant called Lake Charles that would require it to invest nearly as much as its market cap was at the time.
The company said this was where its future lay, and the project would change the face of the company forever.
Right now however Sasol shares are at their low... ››› more
The most lucrative opportunities are found in times of maximum pessimism. Investors just need to filter through the noise for the right shares to invest in, that have potential tail winds in the months and years ahead.
Small caps have lost favour with investors. Many are trading at all-time lows while growing profits steadily in these tough economic times.
One such share is a little-known ... ››› more
There are many different ways to make money from cryptos…
You can invest in them.
You can trade them.
You can even make money through arbitrage, which is when you buy and sell a crypto simultaneously to take advantage of the price difference.
But did you know you can actually make passive income from cryptos?
I'm talking about…
Recommended:
______... ››› 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
Q. "I refer to the article you wrote about REITs. I just want to ask the reasons for investing in REITs rather than just owning the property itself?"
A. Here are my top 3 reasons to invest in REITs.
Reason 1: Own property and earn returns by doing nothing
First, when you own a REIT stock, that's all the action you need to take in order to earn returns ... ››› more
Landing winning stocks doesn't have to mean investing in small, high-risk operations. Even big companies offer the potential of rich returns over time. But some small businesses will turn into tomorrow's biggest winners and create massive wealth for investors that got in at the right time.
Small-cap stocks, or the penny shares we invest in, are generally companies with market caps of less than... ››› more
Q. “Other than the technical side of trading, what else can I ask my broker which may help with my trading and investing knowledge and the financial decisions I make for my portfolio?”
A. I love this question because I think most people feel intimidated by even talking to their broker.
When you phone up your broker, you may ask them a number of investment and trading questions which th... ››› more
There are 275 dividend paying shares in the JSE today. They average a dividend pay-out of 3.88%.
While a 3.88% dividend is surely better than nothing - this doesn't even cover the interest you'd have received on your cash with a fixed deposit.
And, once that money is paid out by a company the money is lost to it forever.
But what if I told you there's a better option - a company that d... ››› more
As you may know, many shares pay dividends. A dividend is a portion of a company's earnings that it pays to its shareholders. Usually this payment happens once or twice a year.
And because they offer this added benefit of a regular income stream, income-seekers love dividend-paying stocks.
But occasionally, companies surprise investors by electing to pay a ‘special dividend'.
Special... ››› more
The Rand fell over 3% from its open to close last week. This is on the back of Ace Magashule's surprise (and incorrect) inclusion of changing the Reserve Bank's mandate and possible quantitative easing. When you add the bad GDP growth figures, you can see why people panicked and sold the Rand for any price they could get. Typically, this herd mentality happens at exactly the incorrect time creatin... ››› more
If you have a scan of the JSE you'll find there are currently around 68 stocks with a dividend yield of 5% and higher…
You'll also see that a specific stock, Quantum Food Holdings, sits on a massive 16% dividend yield!
That's right, R1,600 in dividends for every R10,000 invested…
If you invest R10,000 into a fixed deposit today you'd be lucky to get 6% on your money - for R600 in i... ››› more
Before Donald Trump escalated trade wars, which sent shockwaves through the markets, stocks were performing well overall.
The major US indices like the Nasdaq and S&P500 were flying.
Even the JSE All Share was showing good returns. From its lowest level to its highest, the JSE was up around 14%. A great comeback from 2018's negative return.
However, while stocks were making all the ... ››› more
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