US inflation just hit a 30 year high. And the US is not the only country experiencing rising prices. The EU, as well as the UK, have also seen the price of goods and services rising.
There are many reasons for this: Supply chains were disrupted by the pandemic; oil prices are high; demand has increased due to stimulus; wages are rising… the list goes on.
But the big question every inve... ››› more
According to Fundsdata, it's ranked #1 in the Multi-Asset Income Fund category for returns over the past year.
It's up over 13%.
On the face of it, that doesn't sound like much.
But it's around DOUBLE the returns you would get from most income investments (Money Market, Income & Interest-Bearing Funds) today.
I'm talking about the…
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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
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
Interest rates world-wide have been dropped to their lowest levels in history.
The US is currently running a 0% - 0.25% interest rate, and the country is pumping TRILLIONS of dollars into its economy via quantitative easing.
In Europe the same plan is being followed, in fact, there are in fact banks borrowing money from the European Central bank at -1% interest rates. This means banks are g... ››› 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…
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Just in: The South African Reserve Bank just lowered interest rates by another 1%, the second time in a month.
This puts the South African repo rate at a historic low!
We can write essays about what the lower interest rate means for business and consumers. But in short - lowering interest rates historically has meant one thing for gold. Its price goes up!
And as you can see in the c... ››› more
Meet Joe - a 60 year old man with pension savings of R3 million.
Like most pensioners, Joe's greatest fear is he'll run out of money before he dies.
After all, most retirement products only plan to look after you for 20 years.
Since South African men and women have a 50% chance of living beyond 83 and 87 respectively (the age most retirement plans work on for each gender), running out of... ››› more
It's been a decade since bitcoin officially started.
Over this time, it's gained a lot of followers and of course, haters.
Some have called it a revolutionary asset, while others have labelled it, a downright Ponzi scheme.
The thing is, whether you love them or hate them, bitcoin will never die. Demand will always be there - especially in today's world.
And it's all because…
... ››› more
The South African Reserve bank will hold its Monetary Policy Committee meeting between 26 and 28 March.
At this stage all the indications are that interest rates might actually drop by 0.25%.
That means, if you keep paying the same amount on your property loan, you will pay it off 13 months faster - just thanks to the lower interest rate!
So how can we know that this'll happen, and wha... ››› more
The producer price index, non-farm payrolls, new housing starts, gross domestic product….
The list of economic indicators released monthly is massive.
The South African Reserve Bank alone releases a four-page report with more than 110 different economic indicators each month. That's not even considering international indicators.
So, which of these indicators should you keep an eye on, a... ››› more
I probably learned more from my mother's retirement experience than anyone else's. When she retired, she wanted security, lived austerely, but had no idea whatsoever of enhancing value.
And therein lay the disaster. My mother sold her home, moved into a seemingly more secure rented complex, and placed all financial resources into a low interest bearing building society account in an extremely h... ››› more
In the past 24 months the JSE All share index has been unable to lift itself out of its sideways channel.
In the last two years it only managed to deliver a 1% move for investors. The trading environment in the local market has been tough to say the least.
There has been a slew of socio-political upheavals, both internationally and locally, that have negatively affected the market.
With j... ››› more
The drought that's battering Southern Africa right now is going to wreak havoc on your pockets in the near future. South African corn farmers are expected to produce the lowest maize produce in 8 years.
The last time production numbers were this low was in 2008.
The numbers are concerning and it seems that South Africa will have to drastically increase the amount of maize it imports to 3.8... ››› more
If you're celebrating that we're almost through winter and had no load-shedding, I have some bad news for you.
You and I might have had an “uninterrupted” power supply this winter but it's going to cost our pockets, big time!
According to an article in the City Press newspaper this weekend, “The economy is set for a shock from the combined blows of Eskom's move to hike the cost of tw... ››› 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
Standard & Poor's and Fitch ratings agencies is expected to give their verdict on the country's rating by the end of this week.
The financial analysts at FSPInvest believe that a downgrade to junk status is inevitable. Even if this doesn't happen this month, it will happen before the end of 2016.
Here's what will happen to the economy and your investment portfolio if the downgrade does happ... ››› more
Since the South African reserve bank decided not to increase interest rates again, you have a brief moment of relief to make sure that you get your financial house in order before the next rate hike. Now is the time to be more frugal with your money. It's not the time to make more debt or increase your spending.
The challenges for consumers in 2016 are far from over. No one know if the reserve... ››› more
So, you think that during retirement you can rely on your investment income to keep you going. Well, what if you find yourself dipping into your actual investment capital to make ends meet?
The danger is, each time you take cash from your investments, there's less capital invested to generate income.
That's why today, I want to show you how an ultra-low risk investment to help you generate... ››› more
Earlier today, Stats SA released its producer inflation data for October. The data showed that the rise was mostly due to climbing food prices.
This data could indicate that a jump higher in consumer inflation could be on the cards.
Let's take a closer look at what the data revealed…
Producer inflation rises to 4.2%
Producer inflation, as measured by the producer price ind... ››› more
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