Incredibly, it's already that time of year when brokers, banks and analysts' dust off their crystal balls and start making wild predictions on what will happen to financial markets over the next 12 months.
Now, it's important for you to remember, that no matter how fancy the title of the person making predictions, or how prestigious the institution, the future has a way of surprising us all.
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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
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
For the first time in nearly 16 years inflation is below the South African Reserve Bank's targeted range.
Yesterday, Consumer Price Inflation (CPI) slowed to 2.1%. That's the lowest number since September 2004.
Now, you're thinking inflation is low, that's a good thing, right?
It's a bit more complicated. Let's explore…
Di... ››› more
2020 has been one hell of a year. Coronavirus has ravaged most markets and yet certain stock markets have hit record highs.
Whatever the reason for the run up, the obvious divergence of share prices from the underlying reality seems to be all too apparent to professional investors.
So, is it time for you to hit the big red button? Is now the time to sell everything?
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It was quite a week for airline stocks.
It started with the announcement from Warren Buffett that Berkshire Hathaway had sold stakes in four major US airlines: United, Delta, Southwest and American Airlines.
This is an exceptionally uncharacteristic move from the legendary value investor.
Firstly, Buffett is all about “buy and hold”. He rarely sells investments unless, the prospect... ››› more
What a horrible start to the year.
Just four months ago most people were dreaming about all the possibilities the new decade held. The world's newspapers and blogs were full of what could potentially be coming in the next 10 years. The widespread use of driverless electric cars. The excitement and fear over the rise of a real artificial Intelligence. And the massive advances in healthcare scie... ››› more
Black Friday is almost upon us.
And many shoppers are already hunting for potential “Black Friday” bargains.
But I have another idea for you…
As ordinary South Africans head to the stores, set on spending more, owning more and having more, why don't you park the trolley and, instead take this opportunity to treat your future-self.
Now I'm totally for saving money.
And, I ... ››› 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
Bungee jumping is a terrifying experience.
It requires you to risk your life (literally) on the strength of a piece of rubberised string.
Now the statistics are very clear: Bungee jumping is safe.
But, when you tip toe to the edge of Bloukrans bridge, look over into the abyss and push off into blue sky with nothing but an elastic around your ankles… well you get the picture.
Fina... ››› more
Do you believe that January 2017 is almost over? It feels like yesterday we were celebrating the New Year to come.
And now, we're about to enter February! You know that feeling when you plan to do something and then you postpone it.
Well sometimes we need that kick in the butt to actually do it.
And that's why I am going to present the first Forex 101 Workshop 2017 early in February to g... ››› more
On 20 January 2017 Friday evening, Donald J Trump became the 45th president of the United States.
We saw the markets welcome the transition of power. But we also know the sentiment is fickle as weather.
In today's Trading Tips, and in honour of his inauguration, I want to look at three bearish (downside) trading set ups and one safe-haven gold trade.
These companies may ... ››› more
It's been an interesting year for gold bulls. The downtrend which brought the yellow metal down to its dismal dollar lows of $1050/oz in 2015 has reversed and gold is once again making an assault on the $1300/oz level.
In the meantime, thanks to the uncharacteristically strong rand, which is now 13% firmer since January, the rand price of gold has pulled back to R17,442/oz from highs of above R... ››› more
There are literally thousands of technical trading strategies.
They range from complex, signal-generating algorithms to dirt simple “Day Trading Breakout Strategies”.
In fact, a “Day Trading Breakout Strategy” is so simple I can explain it fully in a single sentence:
Here is the strategy in just one sentence!
A “Day Trading Breakout Strategy” tells you to ride daily momen... ››› more
How many days do you work in a week? Five, six maybe even seven?
Do you spend 8 to 12 hours at work, drive home and then spend another 2 or 3 hours on your laptop?
Do you enjoy doing this?
I'll be honest. I was just like you. I spent 90% of my day working my fingers to the bone. I hardly saw my family during the week or even on the weekends.
Then, I burnt out.
I spent a week st... ››› more
Last year was a rough year for markets. The All Share Index only managed to eke out a measly 5.22%, almost a third of its long-term average return. It was also a year in which we witnessed the spectacular fall from grace of two the JSE's former market “darlings”.
MTN which delivered 136.23% between 2010 and 2015, ended the year down -36%, after getting smashed on the news of its Nigerian ... ››› more
Investing in South Africa today is proving to be a challenge for even the best investors. We have to deal with constant attacks to our investment capital.
Scam artists, investment fees, taxes, increasing cost of living as well as political decisions both local and internationally all seem to be aligned to do one thing, eat away at the wealth we are trying so hard to build.
The current situ... ››› more
So unless you've been living under a rock for the last week you'll have noticed that the UK scored a massive own goal by voting to leave the European Union last Friday.
What a mess!
All those South African's now “safely” living in the UK and no doubt looking down their snooty noses at our own Nene-gate scandal (and the subsequent rand devaluation) are now facing the same sort of curren... ››› more
The Bidvest group recently unbundled its Food Service business and listed it separately on the JSE as Bid Corporation (Bidcorp) - share code (JSE: BID). Bidcorp received a warm welcome on its debut, kicking off the day at R270 a share and closing well up at R304 (giving it a massive market capitalisation of R102bn).
But let's recap quickly…
The reason for this unbundling was to create a ... ››› more
You're probably familiar with SA's successful emerging market tech and media giant: Naspers.
'But as a South African you might not have considered skipping across the water and putting some money to work by investing in its fast growing US eCommerce rival: Amazon.
This US retail behemoth is often overlooked in offshore portfolios, but, I believe, should be a vital inclusion for any investor... ››› more
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Editors or contributors may have an interest in investments commented on in this website.