US bond markets recently went into inversion. This is when short-term interest rates are higher than long-term interest rates.
And what this can mean is a recession is around the corner. In this case, markets are anticipating a recession sometime in the next 6 to 24 months.
But, even if you don't look at such a “technical” indicator, it should be clear the risk of recession is high.
T... ››› more
Small companies on the JSE have become popular takeover targets.
In 2021, 25 companies were delisted from the JSE, many of these were companies being bought out by management teams or acquiring companies from abroad.
Think of companies like Value Group, Adapt IT, Anchor Group and Spanjaard.
These companies are delisting because their share prices have remained too cheap - and that's creat... ››› more
Bitcoin (and other cryptos) get a bad rep for their energy consumption.
But did you know bitcoin uses less than half the energy of the banking system and the gold industry?
That's right.
And what's even more encouraging is things are getting greener in the crypto world.
Renewable energy is a growing part of the energy mix for bitcoin. According to the Bitcoin Mining Council, renewables p... ››› more
The next time you travel to Europe, it might be very affordable.
You may actually be able to travel to the hotel of your choice, eat at any restaurant and enjoy the tourist attractions without hurting your pocket.
I'm in Greece right now for a few months and I've got myself a little place in the heart of Athens and I must say, all furniture, appliances, TV and other accessories are super che... ››› more
In the modern age things always seem to happen quickly.
A few weeks ago, I explained how the Russian invasion of the Ukraine and the associated sanctions could potentially lead to a shift in world order. It seems this is happening far more quickly than I expected.
We have now seen firm commitments from European countries to massively increase their defence spending. We've also seen tangible ... ››› more
In our QA mailbox this past week...
Q. “Hi Timon, I refer to the below track record…
"I am a bit confused as I believe I am doing something wrong.
My portfolio value is R85,000 and my figures for the above trades have the same results as a portfolio value with R5,000.
Is this possible to achieve such results with a portfolio value of R5,000 and risk 2% at the same time? Thank you…”
... ››› more
Here's a bit of a warning.
Have you seen the petrol price hikes lately?
Probably not yet, but you will.
In America the prices of petrol and diesel shot up to the highest level in over 14 years.
Petrol went to $1.23 per litre or $4.69 per gallon.
Diesel rocketed to $1.35 per litre of $5.11 per gallon.
And as you know, what happens in America, has a ripple effect in South Africa ... ››› more
When war hits, inflation soars, and the economy struggles, investors seek out gold.
This is advice many investors have heard over again.
And considering the price of gold is up from $1,791 in January this year to a high of $2,043 - and still floating around $1,950 this is pertinent advice.
But here's the thing… There are good ways to invest in gold. And then there are BAD ways to invest... ››› more
For years, some high profile, investors and economists as well as governments have denounced bitcoin.
They've called bitcoin “evil”
A useless asset…
A giant bubble…
And declared it “dead” over 400 times.
But the digital asset has persisted and converted some of its most critical sceptics…
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We're all watching as Russia and Ukraine are in the midst of a bloody war. Over 3 million people have already been uprooted from their homes, and have fled Ukraine. All this following Russian President Vladimir Putin's address to his people announcing a “special military operation” in Ukraine to “denazify” the country.
We're experiencing the uncertainty a war like this brings.
The po... ››› more
As the war between Russia and the Ukraine continues to dominate headlines, we're starting to see a realignment of the global order. The US, and its allies in Europe, are driving the push back against the invasion.
You may find this astonishing (especially if you only get your news from US and European media outlets) but they're finding little support in the rest of the world. South America, Afr... ››› more
Around two decades ago, the biggest companies in the world by market cap were names like Exxon, Walmart and China National Petroleum.
Today, the top companies in the world by market cap are Apple, Amazon, Google and Microsoft.
But some believe in the next 10 years, there will be a similar turnover…
And a number of them will be companies that form part of the “Cryptocosm”.
Compani... ››› more
In our QA mailbox this past week...
Q. “Hi Timon, my share portfolio hasn't been doing lekker since the start of Covid and now with Russia at it with the Ukraine, I seriously need to consider diversifying my investments. I've been following you for about 4 and a half years and I'm feeling ready to join Red Hot Storm Trader. However, I have 13 questions
If you can answer them quite briefly.... ››› more
880% growth in 2021...
That's how much worldwide crypto adoption grew last year.
What was behind this meteoric rise?
As I've written before, a major driver was an influx of institutional investment into the crypto world.
But that's not the whole story.
There's another driving force that is pushing the price of crypto assets upwards, and one that could continue to do so in the long t... ››› more
In our QA mailbox this past week...
Q. “I am with Pickpocket Trader and before I take a trade, I would like to know how to calculate the number of international CFDs I need to buy to risk 3% of my R55,000 portfolio. Let's use the example from the most recent trade sent out on 11 February 2022”.
A. You'll need four metrics to calculate the number of international CFDs you'll need to buy.
... ››› more
If you don't want to find yourself on the sidelines saying,
IF ONLY I had gotten into crypto when it was down at…
Then you need to read this NOW!
Today, I'll give you full details on our #1 crypto free of charge.
PLUS I'll show you which coin could turn R500 into R10,000 - starting in 2022 - but you must act NOW!
It’s not often in life you get a second chance!
But, i... ››› more
In our QA mailbox this past week...
Q. “Timon I read the Monday article about why you expect gold to rally with the whole Russia and Ukraine invasion going on. I found it fascinating and would love to know more. I'm not sure if this is the right platform, but I don't know where else to ask. I believe this is going to be ongoing and that you're going to write a lot more on the current situatio... ››› more
I'm finally getting a strong reason to buy gold.
Unfortunately, it comes off the back of bad news.
And this news, is a potential war brewing between many different countries.
If things escalate, it could be a World War 3 threat…
Already, Russia, Ukraine, the EU, America, and the UK are talking about attacks, hacks, sanctions and even war threats…
And guess what has been flying u... ››› more
Markets are abuzz with the mess in Ukraine, war is threatening and it could have a massive impact on Europe.
And then there's the oil price that's edging towards $100 again.
But this is all noise. As companies release their results their share prices fly, or fall…
And right now, there are three penny stocks that have released earnings that investors love. Here's what I am talking about... ››› more
It's been a tough start for equity markets this year. Last night the Dow fell more than 600 points, which is the worst decline yet in 2022. And that's saying something. As I warned in November last year (near record highs for the tech-heavy Nasdaq) higher inflation numbers will put pressure on growth stocks.
The Nasdaq composite fell another -2.9% last night. That means the index is now down -1... ››› more