Following last year's lockdowns, and the protracted economic pressure on businesses due to the Covid-19 pandemic - South Africa's economy is in recession.
Unemployment is up.
And there's a lot of suffering around.
But with every crisis comes opportunity…
And for astute stock pickers the opportunity has never been better…
Why, just yesterday one of my favourite stocks fo... ››› more
Everyone wants to be a part of the elite 5% of traders who are constantly making money from the markets, month after month.
But the reality is...
95% of traders enter the markets, get destroyed and then leave with the idea of trading being a complete scam.
Fortunately, I have been able to make a consistent income over the last two decades and now I wish to give back to you.
Even 20... ››› more
Interest rates in SA are at a generational low - this might be the lowest we'll see them for many years to come. And while the opportunity is here - it's clear that many home buyers and businesses are grabbing it.
A recent report from bond originator, OOBA, shows that in the fourth quarter of 2020 home loan applications shot up a whopping 36% compared to the same quarter in 2019.
The major... ››› more
The amount of available dollars is on the rise...
In simple terms, as dollars become more plentiful, their value drops. Dollars are less scarce, so individuals and businesses are less worried about having access to them when needed.
The Federal Reserve has been a huge driver of this. It's doing whatever it can to support economic growth.
Currently, the Fed's purchasing roughly $120 bil... ››› more
If you reading Trading Tips in 2020, you'll know I was a big seller of Brent Crude throughout the year.
In the last oil article, I made a wild prediction that Brent Crude oil was heading to $30.
If you missed it, you can catch up here…
"Why oil dropping below $40 is a major threat to the global economy"
And in just a few weeks, the price crashed down not only to... ››› more
There were many casualties of the Covid-19 Crisis…
Businesses going under, people losing jobs, economies closing down…
But a major casualty for investors were dividends.
Many companies opted to not pay dividends this year. Some cut their payments down by 50% or more.
And while, you can argue it was the right decision for some companies, it was investors who suffered.
The i... ››› more
Welcome to the first prediction article for the year.
And what better way to start, than to see where our currency is heading.
Now if you've been following my rand predictions from last year, you'd know that I expected the rand to strengthen from R16.50 down to R15.00 against the US dollar.
If you missed the article, you can catch up here...
America is going to hell - And the S... ››› more
“Timon since Joe Biden won the elections, do you think it is another reason why we can expect the American markets to help the JSE rally from here?”
A. Oh absolutely… In fact, when Joe Biden won the elections, that week was the start of both a local and global rally.
And in just one month, the JSE and the American markets broke out of their downtrend, and have been edg... ››› more
Just hours after Bitcoin rose to within $7 of its record high of $19,511, it crashed…
On Thursday 26 November, the top cryptocurrency by market value quickly fell around $3,000 to just over $16,200.
The sudden rout caught many crypto analysts, investors and traders off guard.
So, what's behind the $3,000 decline?
These three reasons might just be the answer…
______________... ››› more
I feel like I'm in a dream.
In the span of two weeks we've have good news overflow the markets.
We had Joe Biden win the elections. Then a few days later, two vaccines come out to end the Covid-19 pandemic.
And both local and global markets have rallied over 4% in that time.
And when I went to my charts, I saw a commodity that is ready for an 18% rally.
I'm talki... ››› more
Q. "Timon with Joe Biden becoming the next president, what are your thoughts on energy and oil prices?"
A. For a short answer, I have never been more bullish (positive) with oil and the energy sectors.
You see, with the Donald Trump administration there were ongoing trade wars and tension with China over the last four years.
And for this reason, we ke... ››› more
Just one week ago, I was feeling very bearish and down with the markets.
I thought Donald Trump would stay president until 2024. I thought we weren't going to see any signs of a vaccine. And I thought South Africa would head back into lockdown.
Boy was I wrong. And I couldn't be any happier with being wrong.
Before we knew it, there was a massive change of hearts in the markets this we... ››› more
Q. “Timon you were right about the delay in the voting in the USA, due to the counting of hand mail.
But now the big question is.
What can we expect with the US stock markets, with Joe Biden becoming the next American President?”
A. I did some research on the weekend. When I went to back-test the US stock markets over the last 23 election years, what I found might surprise ... ››› more
Last week, was a wild ride.
We had a global sell-off in stocks and currencies due to:
• The nail-biting election between Trump & Biden
• Major dollar weakness with the lack of confidence in America
• A resurgence in COVID-19 cases to new highs in Europe and America
And while all hell was breaking loose, the South African rand was on fire.
In fact, last week it broke below ... ››› more
The only thing on investors' minds right now is the US election.
At the time of writing the final votes have yet to be tallied. Right now, many battleground states are still up for grabs, with Pennsylvania looking like the key to victory.
Trump has already claimed the win and approached the courts filing multiple lawsuits in most of the swing states. He's demanded a recount in Wisconsin. A... ››› more
Right now everyone's talking about the US presidential elections. While the US president doesn't directly affect us - what happens to the US economy affects the entire world. So, there's definitely some merit in keeping an eye on the Americans…
Similarly - in 2021 we'll have local government elections again in SA as well.
So how do elections affect the stock market? And is there anything... ››› more
Benjamin Graham' value investing strategy is widely believed to be the most successful of all time.
And while many of you may not know much about Ben Graham, I'm sure all of you have heard of Warren Buffett and are keenly aware of his success as an investor.
What you may not realise is Warren Buffett was a student of Benjamin Graham and he bases his success as a stock picker on what he l... ››› more
Right now, the agriculture sector is one of the spots of excellence in South Africa, and its being treated very well thanks to a double whammy of record-breaking harvests, and increasing commodity prices.
This is good news for the SA economy.
It means the agricultural sector could employ more people, putting money in the consumers' pocket. It means there are many supporting businesses and ... ››› more
“Timon do you believe that with the second wave of COVID-19 cases in Europe will also cause the price of Brent Crude to drop in price?”
A. Absolutely! Thank you for reminding me Joe.
In fact, it’s one of the main factors I forgot to mention in this week’s article.
In the last month, we have seen a resurgence in infections throughout Europe.
We have see... ››› more
Chances are you know of Warren Buffett.
But do you know Buffett's right-hand man, Charlie Munger?
Most people are familiar with Munger from his association with Buffett.
For 50-plus years, Munger has been the vice chairman at Berkshire Hathaway. And his eye for great investments has helped Buffett grow Berkshire into a $514 billion investment giant today.
But I don't want to talk a... ››› more
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