If you've been following mainstream economic news over the past month, you'll probably think the world is in a much better place. You'll have heard about a variety of drug trials on Covid-19 vaccines.
News from companies like Johnston and Johnston, Merck, Moderna, Novavax all seem to be buoying investor sentiment.
The slightest hint of a potential solution to the Coronavirus problem and ma... ››› more
Did you know there a number of problems that can arise when crypto trading or exchanging?
Not all exchanges support the necessary coins or trading pairs.
You also need to trust the exchange you're using in case your cryptos disappear.
And of course, you have to pay certain fees like commission for exchanging cryptos.
The good news though, is there's a technology that can solve these... ››› more
The world is in turmoil!
Although looking at global stock prices you might not believe it.
But let me tell you, despite the insane market recovery, economic chaos and uncertainty are still the order of the day.
And, when you're reviewing your potential investment options, it's not surprising if you feel like you've been dropped in the middle of the jungle with nothing but a survival kn... ››› more
Eskom recently submitted documents to the Centre for Environmental Rights (CER) stating that it could possibly keep its Grootvlei, Camden and Hendrina power stations open as late as 2030. These are all power stations at the end of their lives, that would have been shut in part starting this year!
Eskom is doing this to keep extra capacity in the grid, and avoid load shedding.
But here's t... ››› more
A bear market refers to a widespread decline in asset prices of at least 20%.
We've seen stock markets fall 20% and more in recent months. The oil price fell through the floor, and unemployment is soaring.
This is not a fun time to be in, and you might be confused, panicked or just blown away.
The good news is, this is only a phase - and it will also pass. Things will turn around and l... ››› more
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
Over the long-term cash isn't the best investment, it underperforms in times of economic prosperity. And impacts portfolio returns as it barely keeps pace with inflation. But in times of increased uncertainty and a stock market sell-off like we've just experienced…
Cash is King… Its value is less volatile than riskier assets. But you should be ready to deploy the cash when the time is rig... ››› more
There seems to be optimism flowing back into European markets.
Particularly in the UK as, in the last month, we've seen the FTSE 100 recover over 18%.
This is due to a number of reasons including:
• The COVID-19 infection rate is slowing down
• Talks about the ease of strict lockdowns
• The pound strengthening at an alarming rate
• Investor confidence entering the stock markets... ››› more
During this lockdown period I've been unwilling to even go to the shops.
Not that I'm that scared of social contact - but I don't like dealing with road blocks. I've just heard too many stories of police brutality.
So, I've been looking at every way to reduce my need to drive about.
My butcher delivers my meat, a local farmer delivers fruits and veggies… And now, my wife's chronic m... ››› more
Headlines this morning will be dominated by the fact that WTI traded at -$40.32 a barrel before settling at just over $1.
Most retail investors will be thinking they have missed out on the trade of a lifetime when Oil trades above $20 today (when the June contract starts trading).
But the only people who could have made big money buying oil at near zero or negative are those who can take p... ››› more
***What's a circuit Breaker?
Q. Circuit Breakers? This is a new term that I've been seeing on Bloomberg lately. Could you explain what it means and does it apply to the JSE as well?
A. A circuit breaker is a safety device which stops the flow of electricity by switching itself off, if anything goes wrong.
The same applies in the financial world…
A circuit brea... ››› 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
March will be known as the worst month of all-time for the South African rand.
With the ongoing lockdown, the increasing rate of COVID-19 cases, the crumbling economy, and the downgrading from Moody's - It's just been bad news after bad news for SA.
And what happened last week?
Well we saw the South African rand hit record lows passing through the R19.00 mark against the US dollar.
... ››› more
When is the right time to buy our market for the recovery?
That's the question I bet everyone's been asking.
We all know how lucrative buying the bottom following the 2008 financial crisis was…
And every investor certainly wants a repeat of that performance.
Five penny stocks for crisis profits
• How to pocket u... ››› more
March 2020, will be known as one of the most brutal months that the JSE and the equity markets have ever seen.
On 12 March, the index fell 9.51% and a further 11.98% on 16 March - two of the biggest daily drops since the 2008 Financial Crash.
CEO - JSE, Leila Fourie, said in an interview about the value drop and trade volumes:
“Over the past few weeks on average we've been processing... ››› more
Warren Buffett has a famous quote: “Be fearful when others are greedy and greedy when others are fearful.” As with many great quotes, there's a great deal of wisdom packed into those few words.
And today, I've found the opportunity that perfectly puts Buffett's quote into practice.
Here are its features:
1- Your capital is tied up for a maximum of just three years
2- You stan... ››› more
Today will mark the end of the worst quarter for SA shares, having suffered the global fall out of the coronavirus.
This is after years of under performance relative to global indices.
And even though it looks like you can go out and buy anything and hold on for certain profits we could still see more selling pressure.
The SA lock down could be extended, and small business owners and ... ››› more
Lots of people think of gold as a hedge against uncertainty. And that's usually the case.
But over the past two weeks, something odd happened in the gold market…
From 9 March to 19 March, the dollar gold price fell from $1,679 to $1,472.
If gold is the ultimate hedge against uncertainty, why then, did it fall double digits (over 12%) in less than two weeks?
... ››› more
The biggest fear you'll experience when trading is the fear of losing money:
· What if your trade goes against you?
· What if you pick the wrong time to enter a trade?
· What if you take your profits too early?
Pickpocket Trader just closed a massive 323% gain on the US 500…
In the same week... ››› more
Winston Churchill famously said:
“A pessimist sees the difficulty in every opportunity, an optimist sees the opportunity in every difficulty.”
I love that saying. Except today I'm changing it just a little:
“A pessimist sees the difficulty in every opportunity, an investor sees the opportunity in every difficulty.”
And that's what my piece is about this week.
Br... ››› more
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