The US has just entered into a technical recession. That is, two consecutive quarters of negative GDP growth.
Now, some think the US economy will struggle over the next year as inflation remains high, the Fed hikes interest rates, and consumers become more conservative with spending.
Others believe our economy has a lot of room to run — especially as we start to get back to normal followin... ››› more
The US consumer price inflation rate (CPI) for June 2022 was released last week, coming in at a shocking 9.1%. By comparison, the number for last year, June 2021, was 4.9%. And back then, this was seen as a huge problem. Remember, the US targets an inflation rate of just 2%.
That's the bad news. The good news is we're seeing definite signs the inflation rate is set to fall.
US gasoline price... ››› more
Three Arrows (popularly known as "3AC") is a crypto hedge fund based in Singapore.
The company had no retail customers, but it borrowed money from many crypto firms that did, such as Celsius and Voyager. That money was largely made up of customer deposits.
Three Arrows made a lot of risky bets with it.
Some of the money was invested in start-ups, but hundreds of millions went into crypto-... ››› more
After rallying 373% from its pandemic lows, Bell Equipment (JSE: BEL) stock is sitting at a six month low. As recently as March 2022 the stock traded at R17.50 - yet it's at R11.84 now.
During the pandemic the agricultural and mining equipment supplier saw a big recovery in demand as commodity prices soared. As a result, demand recovered and the company had a big recovery.
For example, in Ma... ››› more
Or so I hope.
You see, on Wednesday 6 July 2022, the European Parliament voted to back a proposal that labels natural gas and nuclear energy as "green".
This comes at a time where the EU is experiencing a severe energy crunch.
In fact, things are so bad that some EU countries have re-started coal power plants.
But of course, there's strong opposition from many law... ››› more
We all want to buy low, sell high. Or buy a property at the lowest price possible, and get the best possible rental income from it, right?
So, is there a best time to invest in property? Is there anything to look out for when making your investment?
The reality is, great investors learn to make the best of every market cycle. The key is to have strategies that fit the different market cycles.
L... ››› more
Even though I started my investment ‘career' during my university years, I still wish I had done so earlier.
Even a year or two, well timed, can make a world's difference. There was so much money I wasted on games, gadgets and expensive clothes…
Possibly the most important investment idea not to miss out on…
Investment Idea #1 - The earlier you start - the more you will end up with
... ››› more
As a novice trader, it's easy to try and guess where the market's bottom is.
It's easy to see a bounce in a falling market, and assume that things are going up from here.
But calling a bottom is one of the most dangerous things a trader can do. In fact, with trading we say you're trying to ‘catch a falling knife'.
Most traders pile up their positions with a whole bunch of longs (buys) a... ››› more
“This is a personal invitation, from me to you, to give Red Hot Penny Shares a try for a whole year with no pressure or obligation whatsoever.”
Since I started with Penny Shares in 2011, we've had 191 share tips closed - with 130 winners.
That's a win rate of 68%. So just more than two out of three shares are winners.
On average out of the 191 shares - the gain is 30%. The average win... ››› more
A few weeks ago, I made a rather extreme prediction. I predicted the world would be entering a period of greater instability triggered specifically by food price increases. Normally I would wait a little longer before writing a follow up, but things are changing rapidly on the ground.
Over the last week or so, we've seen upticks in instability across much of the emerging world. Protests have er... ››› more
Q. “Hi Timon, I have a R250,000 portfolio and I am using the special 2% risk rule per trade as you have taught us. Based on your last trade with Shoprite with the entry being R242 and your stop loss being R232.00 does this mean I should buy xxx CFD contracts in this trade?” Hi Pete,
The number of contracts purely depends on the how much money you deposit…
So if you have a portfolio of R2... ››› more
You'll often hear us say the same thing.
To trade successfully you'll need to know how to follow the rules, keep to discipline and repeat the process.
However, there is one crucial mistake that we see all the time from new traders.
And the reason for it involves fear.
You'd think that greed is what destroys traders. But I think the fear of losing is what prevents traders from being suc... ››› more
Here's a bit of a warning.
Have you seen the petrol price hikes lately?
Probably not yet, but you will.
In America the prices of petrol and diesel shot up to the highest level in over 14 years.
Petrol went to $1.23 per litre or $4.69 per gallon.
Diesel rocketed to $1.35 per litre of $5.11 per gallon.
And as you know, what happens in America, has a ripple effect in South Africa ... ››› more
For years, some high profile, investors and economists as well as governments have denounced bitcoin.
They've called bitcoin “evil”
A useless asset…
A giant bubble…
And declared it “dead” over 400 times.
But the digital asset has persisted and converted some of its most critical sceptics…
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As the war between Russia and the Ukraine continues to dominate headlines, we're starting to see a realignment of the global order. The US, and its allies in Europe, are driving the push back against the invasion.
You may find this astonishing (especially if you only get your news from US and European media outlets) but they're finding little support in the rest of the world. South America, Afr... ››› more
In our QA mailbox this past week...
Q. “Timon I read the Monday article about why you expect gold to rally with the whole Russia and Ukraine invasion going on. I found it fascinating and would love to know more. I'm not sure if this is the right platform, but I don't know where else to ask. I believe this is going to be ongoing and that you're going to write a lot more on the current situatio... ››› more
I'm finally getting a strong reason to buy gold.
Unfortunately, it comes off the back of bad news.
And this news, is a potential war brewing between many different countries.
If things escalate, it could be a World War 3 threat…
Already, Russia, Ukraine, the EU, America, and the UK are talking about attacks, hacks, sanctions and even war threats…
And guess what has been flying u... ››› more
I have an important notice for you.
First, I am not a BIG bear when it comes to Bitcoin. I know in the medium to long run, it's going to continue to make all time highs.
However, since November 2021 I have been shorting (selling) Bitcoin and have been making decent profits.
In fact, I sent out an analysis on how I expected the price to drop from $50,000 to $40,000.
And it did exactly... ››› more
I sometimes imagine the stock market as a constant humming. Not the hubbub hum of an open outcry trading floor, nor the electrical buzz and click of servers and machines, but the whine of millions of voices guiding billions of dollars, rand and rupees into bets on global business profits, economic scarcity and the future direction of mankind. It's the droning roar of the engine that powers the wor... ››› more
Did you hear?
Some unfortunate crypto investors/traders lost everything.
And that's not hyperbole.
In just under a month, one crypto exploded 83,000%. Only for it to erase all these gains just a couple of weeks later.
So what happened?
Will you outlive your money?
My colleague Josh Benton recently discovered a w... ››› 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.