For the past two years I've continuously told investors that South African small cap companies present much better opportunity than most large cap stocks do.
In the past three months the Small Cap index is up 17.8% compared to 15.94% for the Top 40 index. That's why I sent my top 5 plays for 2021 to my Red Hot penny Shares readers just 2 weeks back.
But this outperformance has just starte... ››› more
Firstly, if you're a new crypto investor then you deserve a congratulations...
You just survived your first 30% crypto dip!
The good news is, we've seen plenty of these before. It's not something that's all that unexpected.
The bad news is, expect more crashes to happen as we march though this current mega crypto cycle.
Nothing has fundamentally changed in the crypto space. But it'... ››› more
Like the tourism and hospitality sectors, construction has been hard hit by the Covid-19 pandemic.
As a result, the construction sector saw a 30% collapse in the second quarter of 2020.
But it looks like the construction sector has started to see a recovery at last. In 2020, the Afrimat Construction Index dropped to below 70 - from a 2019 average of just above 120. Indicating a huge drop i... ››› more
One of the most frequent questions I receive is…
“Where can I buy Cryptocurrencies”?
Cryptos are a relatively new asset class, but they are certainly gaining widespread traction.
And as the market continues to grow, more ways to invest in cryptos will be available.
But for now, here's two simple ways to add cryptos to your wealth-building strategy…
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Right now, there are scores of companies doing share buy backs of their own shares.
Think of Argent, Onelogix, Bowler Metcalf, Insimbi, Mpact and Trellidor… And these are just a handful of penny stocks. There are many more on the JSE actively buying shares in themselves.
So why would a company do this, and is it good or bad?
No ord... ››› more
Bitcoin hit another major milestone…
The $50k mark!
But Ark Invest - a global asset manager with $50 billion worth of assets under management - believes this is only the beginning of Bitcoin's meteoric rise.
In fact, they think Bitcoin has the potential to reach as much as $3 trillion by 2025 versus roughly $900 billion today.
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There have been many changes that the coronavirus pandemic has forced on us. And the healthcare sector perhaps has seen some of the most profound changes.
Whether we're managing a chronic condition, like high blood pressure, or an acute illness like strep throat, the market demand for these healthcare needs hasn't decreased a bit. But COVID-19 has made getting in to see a doctor at their offic... ››› more
There's never a dull moment in the crypto market.
And last week, it got a whole lot more interesting…
By now I'm sure you've heard, Tesla - one of the world's largest companies - has set its sights on bitcoin.
In their annual report, Tesla announced…
‘In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize ... ››› more
Following last year's lockdowns, and the protracted economic pressure on businesses due to the Covid-19 pandemic - South Africa's economy is in recession.
Unemployment is up.
And there's a lot of suffering around.
But with every crisis comes opportunity…
And for astute stock pickers the opportunity has never been better…
Why, just yesterday one of my favourite stocks fo... ››› more
It's no secret that investors take profits on winning bets…
And if there's an investment where one would expect to see money come off the table - after rising rapidly - it's bitcoin.
This is what happened after the largest crypto hit the $41k mark in early January.
Interestingly, this time round the sell-off hasn't lasted long…
There are signs that point to investors taking ... ››› more
Did you know the Scotch Whisky industry makes Scotland around as much money as the entire platinum mining industry makes in South Africa.
That's if you combine its contributions from whisky exports and tourism!
Now what if I told you Africa could soon get a very big boost to its economies on the same scale as Scotch to Scotland… Most probably even bigger!
What am I talking about?
... ››› more
2020 was a horrible year for many industries…
But this one enjoyed record-shattering growth!
So much so, commentators across the world believe it could be at a tipping point.
“Why I think these five shares could turn 2021 into the most profitable year of your life”
And as you ... ››› more
Interest rates in SA are at a generational low - this might be the lowest we'll see them for many years to come. And while the opportunity is here - it's clear that many home buyers and businesses are grabbing it.
A recent report from bond originator, OOBA, shows that in the fourth quarter of 2020 home loan applications shot up a whopping 36% compared to the same quarter in 2019.
The major... ››› more
The amount of available dollars is on the rise...
In simple terms, as dollars become more plentiful, their value drops. Dollars are less scarce, so individuals and businesses are less worried about having access to them when needed.
The Federal Reserve has been a huge driver of this. It's doing whatever it can to support economic growth.
Currently, the Fed's purchasing roughly $120 bil... ››› more
For the past year I've been telling investors small cap companies are selling for a fraction of their true worth - despite the pandemic and SA's economic woes.
And with the small cap index jumping 17% in the past three months, it certainly looks like the momentum is building.
In fact, in the past week I've noticed an institutional research report being released on a small company I've been... ››› more
There were many casualties of the Covid-19 Crisis…
Businesses going under, people losing jobs, economies closing down…
But a major casualty for investors were dividends.
Many companies opted to not pay dividends this year. Some cut their payments down by 50% or more.
And while, you can argue it was the right decision for some companies, it was investors who suffered.
The i... ››› more
Small cap stocks have had a tough time in recent years. While the underlying businesses in many cases did really well - their share prices didn't.
Between March 2016 and March 2020 the Small Cap Index was down 44%.
In the last 6 months though, the Small Cap Index is up 25%, erasing a great portion of its past losses.
And thus far 2021 looks like a scorcher for small companies.
In t... ››› more
The Crypto market is FLYING right now…
It just broke through the $1 trillion value mark, which is an amazing feat in just over a decade.
But what's stolen the headlines over the past month is the meteoric rise of bitcoin.
The number one crypto has rallied to nearly $40,000 today.
And it’s soared over 146% since I recommended it to Real Wealth readers in November 2020’s issue.
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Between May 2015 and May 2018, the JSE Small Cap Index went nowhere. And between May 2018 and May 2020 it dropped 44.68%.
Since then however the Small Cap Index is up 29%.
That's a huge rally in just six months.
But here's the thing. It's not over yet. The small companies in this index aren't even back to the levels they traded, at the start of 2020. Never mind their 2018 highs…
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Right now, all of the popular DeFi projects are built on top of Ethereum.
In fact, if you look at the top 100 cryptos by market cap, most of them are built on top of Ethereum.
But as you may know, Ethereum doesn't deal well with massive network demand just yet. (That's part of the reason Ethereum 2.0 is so hotly anticipated.)
And so, transaction fees have gone through the roof. It curr... ››› more
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