The latest release from StatsSA showed that South Africa's economy grew 3.1% for the second quarter of 2019.
This was better than the 2.5% expected by most economists, and it's a good sign for South African's who were worried about recession hitting.
Unfortunately, this growth doesn't necessarily mean our economy is growing again…
With first quarter GDP shrinking 3.2%, 3.1% growth do... ››› more
Sometimes the stock market behaves inexplicably.
Quality companies trade at unbelievable discounts. Or they sell at prices so high that you might flinch.
What makes this difficult to muster is the fact that these ‘discrepancies' tend to keep going on for much longer than you'd think possible.
One such share was Curro Holdings.
The company listed in July 2011 and investors could p... ››› more
By definition, Penny Stocks trade at R10 or less and they're typically small companies with big growth potential.
These investments are attractive because small share price moves translate into large percentage gains - or losses if you pick the wrong stock. In short, these are volatile investments, so you're advised to use caution.
But if you're looking for one of these top penny stock com... ››› more
In the past six months, a little known JSE listed company, Insimbi, is up nearly 50%.
And on 26 September 2017, it announced its revenue increased 247%, and earnings per share increased 142%.
Growing profits by as much as 142% in an economy that's in recession is nearly impossible.
But Insimbi achieved this - how you ask?
Well, the company made a smart acquisition at the end of... ››› more
Over the past six years I've worked with many estate agents looking to manage my rental properties. And whenever it took time to fill up an empty apartment they'd tell me “the market is slow this time of year”.
They weren't all lying to me. Considering the post-2008 property market it hasn't been smooth sailing for anyone.
South Africa's economy is struggling and people are finding it ha... ››› more
The JSE All-Share Index is just 10% off from its all-time high.
It's sitting around the highest PE level of all time for the index, at 23.24.
At the same time, US markets are at all-time highs, and interest rates are threatening to go up.
With this in mind, I was recently asked by an investor, whether the JSE is overvalued and set for a massive correction.
So, should you hold on or sel... ››› more
No one can accurately predict where the markets will go in 2017.
The fact is, the markets become volatile in times of uncertainty.
And when the markets become volatile, there's a good chance your investments could decrease in value. This is simply known as market risk.
The main causes of market risk are recessions, political turmoil, natural disasters and terrorist attacks. Or even sm... ››› more
In 1973, Egypt and Syria launched an attack on Israel.
During this war, Israel was supported by its close ally, the US.
In response to US support, the Organisation of Arab Petroleum Exporting Countries (OPEC), who control much of the world's oil market, implemented an oil embargo against the US and its allies.
Consequently, the price of oil soared from $3 a barrel to $12 a barrel.
... ››› more
Mention Coca-Cola, Wal-Mart and Johnson & Johnson and the first thing that might come to mind is…
They're some of the biggest and leading companies in the world.
They're popular brands around most parts of the world.
And they've made plenty of savvy investors very wealthy.
For example, A R10,000 investment into J&J shares in 1970 would be worth in the millions today.
And if y... ››› more
89 million babies were born around the world this year.
In the same time, 37 million people passed away.
That means the world's population grew by more than 52 million people in only eight months!
That's the equivalent of South Africa's population added to the world.
Imagine that, an entire country gets added to the world every 8 months!
And all of these people need an education,... ››› more
In the early 1970s, companies like Coca-Cola, IBM, Johnson & Johnson, Pepsi and 46 others soared on the stock market. These companies were dubbed the “Nifty-Fifty”.
In simple terms, the “Nifty-Fifty” were a group of premier growth stocks that became market darlings in the early 1970s. All of these stocks had proven growth records, continual increases in dividends and high market caps.
... ››› more
So far this year, you've heard the word recession a lot. It's a real threat to the economy right now.
The third quarter of 2015 saw 0.7% gross domestic product (GDP) growth - the fourth quarter saw 0.6% GDP growth. Results of the first quarter of 2016 shows the economy contracted 1.2%.
Economists expected the economy to contract only 0.1%, which leads me to believe that nobody really knows... ››› more
Until Sunday 24 July 2016, economists, local and international investors were investing under a false notion that foreign investors bought South African equities to the value of nearly R100 billion.
Economists were mostly baffled by the figures being reported by the JSE. They could not understand why so many investors were buying up such a large portion of South African listed companies. Some ... ››› more
Just imagine the shock I got when I read that, “59% of TFSAs have been opened at banks, and the majority of investments are in cash.”
Really? Cash investments? That really worries me.
Think about this…
Investing in a tax-free deposit account from the major South African banks will give a return between 6%-8%. But consider that inflation is sitting at 6.1% and not going to stop th... ››› more
Regular contributor to FSP Invest's South African Investor publication, Dawie Roodt, recently reported that he believes South Africa is already in recession.
As we know, Roodt doesn't make any statement lightly. He is usually armed with facts and figures before he makes a statement like this.
This begs the question, did South Africa slip into a recession and nobody noticed?
Let's take ... ››› 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
This is the most exciting bull market for 2016 yet…
One that almost nobody is talking about... But it has huge implications for investors like you and I…
I'm talking about the bull market in chrome ore.
I know… Commodities are ‘out of flavour' right now. And nobody's predicting any of them will go up. It's all based on slowing demand from China.
But people have been saying thes... ››› more
Today I'm going to introduce you to a new way of thinking about companies.
As an avid reader of Money Morning, you've probably heard the terms: “Value investing” and “growth investing” before… And, if you haven't, don't worry, I will quickly recap what each strategy entails.
But, today we're going to go one step further. I'm going to show you a simple hybrid approach - what I cal... ››› more
Earlier today saw the release of the RMB/BER business confidence index. The data showed that business confidence is continuing to fall.
So what is putting pressure on business confidence?
Let's take a closer look…
The business confidence index falls to 36
Business confidence has hit 36 for the last quarter of the year, reports Fin24. This after the index fell “from 42 to... ››› more
Earlier today, Stats SA released its gross domestic product (GDP) data for the three months to the end of September.
This comes after two quarters of negative growth this year.
Let's take a closer look at what the data shows…
GDP rises 0.7% from July to September
GDP rose by 0.7% in the third quarter of the year in comparison to the second quarter when the economy contract... ››› more
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