Ethereum (2nd largest crypto by market cap) has been one of the best performing crypto-currencies this year.
Last year, I mentioned that the crypto-currency was about to undergo a major upgrade in 2020.
With the upgrade launching in July, it's about to make Ethereum much faster, more secure and better for DApps (Decentralized apps).
Ethereum 2.0 also contains the promise of an entirel... ››› more
It's very hard to make sense of markets right now.
On the one hand, it's crystal clear the economy is in a mess. Unemployment is even higher than the worst of the Global Financial Crisis of 2008. The damage done by lockdowns cannot be easily undone.
On the other hand, governments have pumped unprecedented amounts of money into the system and the market seems to be on an unstoppable rise. J... ››› more
The word “investing” might conjure up men in suits, big deals around boardroom tables and the exchange of millions of rands.
But today I'm here to tell you that investing is not just for the rich, it's not just for super smart financial gurus. And you don't have to be the Wolf of Wall Street to start investing.
Even if you have only a few rands to spare, you can start investing today.... ››› more
Much of the 1920's was a time of great prosperity and growth in the US.
Many technological developments like cars, radios, electricity became available to the American people.
This economic boom fuelled the fast-rise of the US stock market.
Everybody owned stocks, not only investors. Entrepreneurs, nurses, taxi drivers, you name it. It was everybody's ball-game.
From 1920 to 1929, ... ››› more
Last week I received a letter from a Red Hot Penny Shares member asking about dividends from companies in our portfolio.
‘X' asked for the companies that pay the biggest dividends.
But the answer to that question is a bit more intricate.
You see, a company selling at R1 paying a 5c dividend could be more attractive than a R10 share paying a 30c dividend. But the 30c dividend is techn... ››› more
The final theme in our 6-part series is Healthcare and Pharmaceuticals.
While the global pandemic seems to be “under control” and vaccine trials on the go, there's a continued focus on healthcare, hospitals and medication. These form part of a defensive sector that is generally less cyclical.
In preparation for an increase in Covid-19 patients the healthcare sector ramped up medical e... ››› more
Over the past few weeks, many clients have contacted me to discuss their prospects in the face of looming retrenchment and salary cuts. Some are facing early retirement; others have been forced into unpaid leave which means their savings are starting to suffer. All of them are afraid of what this means for the future.
There is no question, the economic impact of the Covid-19 pandemic and the r... ››› more
I bought my first shares in the midst of the 2008 financial crisis.
My first buy was Old Mutual shares, and the price rose by more than 211% in the 18 months following my buy…
I rolled some of my returns into a property company, and an industrial stock - in the end I turned a couple thousand rand as a student into enough money to pay for my studies, put down a deposit on my first propert... ››› more
This week we reveal the second last theme in our 6-part series set to perform in the new economic reality, which will evolve as global economies open and start recovering post Covid 19 lockdowns.
Part 5 - Precious Metals:
Precious metals provide diversification that protects your portfolio in bad times. But can also benefit in the good times. Investing in the physical... ››› more
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
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
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