In November's issue of the South African Investor, I warned readers about two types of “danger” shares lurking on the JSE.
One of these types is called the “High-Yielder”.
Simply these are shares that sit on suspiciously high dividend yields.
You've probably heard me speak about these “income-traps” before, but in the South African Investor, I went further and reveale... ››› more
It's that time of year again…
Just like children eagerly wait in anticipation for Santa to deliver presents to them, so do investors.
Investors are waiting for the arrival of stock market profits during Christmas time as well.
This is all because of the Santa Claus rally which is, right now, flooding the mainstream media.
Go to Google, Bloomberg, Business Times and you'll see big ... ››› more
For almost 130 years the JSE was the only stock exchange in South Africa.
But as of a couple of years ago that changed when three new exchanges were given stock exchange licences.
In 2019 the JSE has seen 21 companies de-list. Digging a little deeper, it's important to take note of what's been happening with the competition…
All three of these JSE competitors are growing
... ››› more
In April 2019, I warned investors about Rebosis - A JSE listed property company that had a dividend yield of 57%.
You see, at the time, a yield this high was very unusual for a company listed in SA. So I warned investors not to fall for this “high yield investment trap”
And, since then, the company cut its dividend completely and its shares have plummeted from 162c to 32c - around an ... ››› more
“I have started with the MATI Trader System Programme to help me with my trading anxiety.
I just don't know what to do about it. When I take a trade, I am scared of losing money, I lose trust in the system I'm following and I don't trust myself as a trader…
Are there any pointers you have to help with my trading anxiety?”
A. In lesson 4 of the MATI Trader System programme, I go in... ››› more
Many retail investors are bombarded with ways to invest through exchange traded funds (ETF), most of which passively track an index.
The ETF platforms highlight how cheap they are, but in actual fact they aren't cheaper. If you have more than R80,000 in the account, its expensive. The ETF platforms charge between 0.35% and 0.65% ex VAT just for annual admin fees. That's on top of the other fees... ››› more
Here's something you might agree on…
Investing is hard!
If it were easy, I guess, everybody would be rich.
But as investors, we often make it harder for ourselves to make money and grow our wealth - especially when we continuously fall into - often easily avoidable - investment traps.
Today I'm going to share two common ones, and how you can avoid them...
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One year ago, the Intercontinental Exchange (ICE) - which owns the NYSE - revealed plans to launch a futures exchange and digital assets platform - called Bakkt.
Bakkt's goal?
To transform Bitcoin into a trusted global currency with broad usage. More importantly, make Bitcoin a more sound and secure offering for key players in the market who mostly shunned it…
I'm talking about the... ››› 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
The rand has collapsed over the last two weeks. It moved from below R13,90/$ to worse than R15,30/$. That's more than 10% weaker in a fortnight. Obviously, many of you are worried you've lost your chance to get money out of SA at a reasonable exchange rate.
The question on everyone's mind: Should you get out now or wait for a better level?
The only way to answer this question is to look f... ››› more
Q. "I refer to the article you wrote about REITs. I just want to ask the reasons for investing in REITs rather than just owning the property itself?"
A. Here are my top 3 reasons to invest in REITs.
Reason 1: Own property and earn returns by doing nothing
First, when you own a REIT stock, that's all the action you need to take in order to earn returns ... ››› more
Our market scanner has highlighted several shares in overbought and oversold territory.
Below is extracted from our weekly data table. Our model scans most of the shares in the JSE All Share Index and measures their standard deviation using our proprietary methodology. We supplement the standard deviation with fundamental and technical analysis to come up with our investment ideas.
Someti... ››› more
Right now, many investors are scrambling to find assets that don't follow the swings of the stock market.
Their first choice is gold.
You see, gold has constantly proved itself as a supreme store of value. If investors get scared by financial or political news, gold makes a great insurance policy.
It is almost certain to hold its value over time.
And obviously in times of turmoil, ... ››› more
As you may know, many shares pay dividends. A dividend is a portion of a company's earnings that it pays to its shareholders. Usually this payment happens once or twice a year.
And because they offer this added benefit of a regular income stream, income-seekers love dividend-paying stocks.
But occasionally, companies surprise investors by electing to pay a ‘special dividend'.
Special... ››› more
Don't you wish you started investing earlier in life? I certainly do. Even though my first investments were made during my university years, there was so much money I wasted on expensive clothes, computer games and gadgets.
While I'm happy with where I am now, there are so many things I wish the younger me knew.
From the nitty-gritty details of how and why to invest, to the bigger-picture ... ››› more
I'm only 28 but I'm not like most under 30s…
I constantly think about my future retirement nest egg. And its most likely because I've worked in the investment industry for eight years and surrounded by a lot older colleagues.
I've also been lucky enough to attend a lot of our global investor conferences where I got to chat to people a lot older than me… People either preparing to retir... ››› more
We all like to make a lot of money. It's human nature.
Take investing for example…
People tend to invest most of their money into stocks. Why?
Because stocks are usually the best place to put your money for the highest and fastest growth.
But by doing this, investors sometimes ignore or underestimate the importance of income investing.
Here's what I mean…
... ››› more
At a new year's party, a family member introduced me to a friend and mentioned to them that I work in the investment industry.
The guy leaned in and asked, “So what will the stock market do this year?”
To which I replied “There’s no way to be sure, and it’s not something I focus on when investing”
“How about the economy, will it grow again in 2019?... ››› more
From mid-2002 to mid-2017, the JSE All Share returned a cumulative 420%.
Doesn't sound too bad, right?
But if you had re-invested dividends, the return would be over 700%
Just think about that for a second…
That's an extra 300% growth thanks to simply reinvesting the dividends.
To put it another way, R10,000 back in mid-2002 would be worth over R50,000 invested in the JSE. Bu... ››› more
Q. “I have money but no clue on how to trade the markets. Should I find a mentor to help me on the path to trading success or should I learn to trade alone with whatever resources are out there?
A. When I started, I had the internet and books to learn how to trade.
And yet it still took me a good sev... ››› more
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