So, you spend less than you earn and you're putting some savings in the bank each month?
Truth is - your money in a savings account isn't doing anything for you with how low interest rates are right now…
Perhaps you've considered investing - but you've been unsure about where to start?
Here's what you need to know…
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Get starte... ››› more
I hope you are safe today. Amidst the unprecedented looting in KZN and Gauteng there are glimmers of hope as communities come together to fight the violence.
But once the fires stop, and the rubble is cleared, which businesses will be hardest hit - and which ones will need the longest time to recover fully?
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It's a year since 2020's hard lockdown ended.
We're back in level 4 today.
But life has changed a lot. We've adapted to the pandemic and its effects on our lives and businesses.
So, what's the state of the South African economy today, and how does it affect your investments?
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How to Grow a Multi-Million Rand Retirement
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When investing I look for stocks that have disconnected from their true value. If a share price is much lower than what it is worth - I buy it.
But every so often I come across a stock that is the opposite. Its share price is so much higher than what it is really worth that I simply cannot stay quiet. I need to warn investors about it.
Today there's two stocks like this I want to share wit... ››› more
There are a thousand indicators, ratios and models we can consider when investing or trading.
But at the end of the day the all-important figure is the SHARE PRICE.
No matter, earnings per share, revenue or growth potential. The company's stock price is the final indicator that matters to all investors.
It's the figure we consider when buying or selling. And it's the final indicator of... ››› more
There are 217 dividend paying shares in the JSE today. The JSE All Share Index dividend yield is a mere 2.38% - simply put you're not making much in terms of yield if you buy the AVERAGE stock…
While a 2.38% 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... ››› more
On 20 May 2021 the SA Reserve Bank had its bimonthly monetary policy meeting.
The bank kept interest rates flat - at what is basically an all-time low for South Africans…
In its announcement the bank governor, Lestja Kganyago said “Economic and financial conditions are expected to remain volatile for the foreseeable future. In this uncertain environment, policy decisions will continue ... ››› more
A recent survey by FNB amongst its middle-income clients (R15,000 - R42,000 per month) shows that over 80% of the customers don't have a cent in savings they can access within 7 days in case of an emergency.
The bank says only 6% of its clients would be able to see themselves through a loss of their salary for three months - and that's even considering access to credit cards and overdraft faci... ››› more
With interest rates at the lowest they've been for most of South Africa's history there's not a lot of profit to be made from interest investments…
But there's a lot of potential on the JSE right now.
In fact, right now there are 51 shares on the JSE with dividends above a 5% dividend yield.
That means you're getting around DOUBLE what you would in an interest investment right now, a... ››› more
In the past two years I've seen many JSE listed small cap companies become acquisition targets, and eventually get delisted from the JSE…
Think of Rolfes Holdings, Pioneer Foods, DAWN, Torre Industries, Indequity and more…
As we speak Value Group and Adapt IT are in the crosshairs of larger suitors looking to buy out, and delist the companies.
Even Distell is an acquisition target ... ››› more
What is a government to do if it has added billions, or even trillions of rands of debt in a short amount of time?
South Africa's national debt increased 30% to R3.7 trillion in 2020. The US printed a fifth of all the money in all its history - in mere months.
Simply put - these amounts are too big to just pay back.
So, these governments need to use another tactic. The ‘raise cash' b... ››› more
By now I'm sure you've noticed commodity prices are booming!
Fifty-three out of 63 commodities monitored by the World Bank were up in price in December 2020 compared with the same month a year earlier.
Copper, Palladium, Rhodium and many other metals are at all time highs. Even agricultural commodities like soy, maize and sunflower are climbing.
I don't expect this to continue forever.... ››› more
Recently I told you how palladium and some of the other PGMs are at record highs…
But the soaring prices haven't just been in these precious metals.
Copper just hit a 10-year high - up 91% from a year ago!
Similarly the price of iron ore is also at the highest levels it has ever seen right now.
Coal - which is really out of fashion and slated as a diminishing commodity is up 75% ... ››› more
Right now the South African repo rate sits at a rock bottom 3.5% interest.
The interest I'm getting on cash in my brokerage account right now is a mere 2.18%.
Simply put - with interest rates this low you HAVE to look elsewhere for yield.
And it so happens that there are a handful of JSE listed penny stocks that are paying dividends up to double and even TRIPLE the current interest rat... ››› more
Small caps and penny stocks have soared in the past year.
The JSE's Small Cap Index is up 58.61% in the past 12 months alone!
A lot of investors are asking me about great small companies to buy and hold for great returns like these in the coming year, and beyond.
But it's important not to throw darts at a wall and pick a lottery ticket. To capitalize on the strength and upside of small... ››› more
Ronald Reagan once said it is “as violent as a mugger, as frightening as an armed robber, and as deadly as a hitman.”
Margaret Thatcher said “inflation is the parent of unemployment and the unseen robber of those who have saved.”
The SA Reserve Bank didn't increase interest rates - as it expects inflation to stay in check. Most investors are simply ignoring the threat of inflation,... ››› more
Dear reader,
In a recent statement oil giant Shell said “oil production peaked in 2019, and that we can now expect it to decline gradually by 1 or 2% per year.”
Oil major BP has come out by itself making a similar claim. According to BP the world has reached ‘peak oil’.
BP expects oil demand to fall by AT LEAST 10% this decade and up to 50% in the next 20 ye... ››› more
For the past two years I've continuously told investors that South African small cap companies present much better opportunity than most large cap stocks do.
In the past three months the Small Cap index is up 17.8% compared to 15.94% for the Top 40 index. That's why I sent my top 5 plays for 2021 to my Red Hot penny Shares readers just 2 weeks back.
But this outperformance has just starte... ››› more
Like the tourism and hospitality sectors, construction has been hard hit by the Covid-19 pandemic.
As a result, the construction sector saw a 30% collapse in the second quarter of 2020.
But it looks like the construction sector has started to see a recovery at last. In 2020, the Afrimat Construction Index dropped to below 70 - from a 2019 average of just above 120. Indicating a huge drop i... ››› more
Right now, there are scores of companies doing share buy backs of their own shares.
Think of Argent, Onelogix, Bowler Metcalf, Insimbi, Mpact and Trellidor… And these are just a handful of penny stocks. There are many more on the JSE actively buying shares in themselves.
So why would a company do this, and is it good or bad?
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No ord... ››› more
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