Over the last seven days, the crypto market shed around half of its value.
With the entire market cap dropping from $220 billion to $120 billion in less than 24 hours.
Most of the major crypto-currencies dropped 20%, 30% or even more
And surprising enough, these massive price swings weren't crypto related at all.
Here are the real reasons why most crypto-currencies crashed last week... ››› more
When market uncertainty is prevalent (like it is right now in South Africa), investing in this asset helps fund managers combat the triple portfolio threat of risk, volatility and losses.
And what's more important than making money?
Not losing it!
So how exactly does it do this?
A Guaranteed Income Booster You simply Can't Igno... ››› more
There are hundreds of thousands of people using blockchain technology right now. And there are millions of people that own cryptos.
Still cryptos haven't quite reached widespread adoption yet - especially from major countries.
But, this could change in 2020.
You see, in the space of eight days, we've seen some of the biggest economies make a concerted effort to legitimise crypto.
A... ››› more
Albert Einstein is merited with saying that compounding ‘is the most powerful force in the world' or the ‘eighth wonder of the world'.
When you apply this to reinvesting your dividends, you'll see why compounding is so powerful.
Compounding or compound interest is basically earning interest on interest that you've already received.
When it comes to dividends, it means instead of ta... ››› more
‘Decentralisation' is a word you constantly hear throughout the crypto world. And there's a good reason for this…
It forms the foundation of everything in crypto.
The idea you don't need to rely on a central authority to make things work - be they financial transactions, contracts, proof of ownership, proof of identity… anything - is what crypto is all about.
In traditional finan... ››› more
Let's be honest…
The kind of crypto price mania that happened in 2017 and 2018 was driven by people.
Ordinary investors and speculators trying to make fast money from any crypto that they could get their hands on.
But that's all changed since the boom and crash of the crypto market…
The market and technology behind cryptos has matured and rapidly gained acceptance globally. An... ››› more
The average investor sells his winners and holds his losers believing they will turn around!
This phenomenon even has a name
It's called the disposition effect.
And they even conducted a study to prove it…
In 1998, two US Finance Professors Brad Barber and Terrance O'Dean conducted a study called The Behaviour of Individual Investors.
They analysed the trading ... ››› more
The crypto I want to introduce to you today doesn't get much media attention.
However, it could be just as revolutionary as bitcoin or ethereum…even more so!
And it's thanks to its ground-break technology, which has interested major companies.
In fact, this crypto has already formed partnerships with Microsoft, Volkswagen, Bosch, Fujitsu, Audi, Jaguar Land Rover and much more.
It's... ››› more
2020 is set to be a big year for cryptos.
Not only will we experience the upcoming third Bitcoin “halving” - notoriously known for sparking a bitcoin bull run…
But the second largest crypto by market cap, Ethereum will launch “Ethereum 2.0”.
If you’re not familiar with what this entails, you can read about it here.
For today, however, I want to share one... ››› more
Have you ever experienced a flat tyre while driving? You can feel the car lose balance on the side of the flat tyre.
To fix it, you would replace the flat with a spare. And doing this, brings back the balance of car.
Well just how you would rebalance your car by replacing the flat tyre, you do exactly the same with your investment portfolio.
Rebalancing in investment terms is the proce... ››› more
Bitcoin's entered 2020 just like it finished 2019 - rising up!
After soaring 100% last year alone, the largest crypto has continued its upward trend rising 35% this year.
Because of this, Bitcoin's received a fair amount of attention in the financial media.
However, what you probably haven't seen in the media is the gains “alt-coins” have generated in 2020.
I'm talking about 50... ››› more
For most of history, companies have managed assets such as property, plants, equipment, inventory, cash, and intellectual property.
In today's digital world, a new type of strategic asset is emerging…
I'm talking about, data.
Many of the world's most innovative companies collect, report, analyse and deliver vast volumes of data.
And it's become a key measure of whether a company ... ››› more
Can you guess the best performing asset over the past decade?
If you said stocks, you'd be wrong.
The actual answer may surprise you.
Bank of America analysed the returns of different asset classes over the past decade and this is what they found…
$1 invested in…
• Gold would be worth around $1.35
• US bonds would be worth just over $2
• US Stocks would be worth aro... ››› more
When do you sell a dividend stock?
Some investors love dividend stocks so much they will never sell.
But if your goal is to generate a consistent growing income, knowing when to sell can be tricky.
After all dividend stock prices can fall and dividends can get cut… so what then?
Here are three warning signs to look out for to know when to sell.
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Happy New Year and welcome to 2020.
The last time we entered a new decade, the world was recovering from the 08/09 Financial Crisis.
Since then, the US stock market has repeatedly hit new all-time highs (despite some bumps in the road).
And while we know the turning point in the cycle could be around the corner… we have to remember…
... ››› more
Sometimes taking a contrarian view of a market or investment, can pay off big time…
One of my all-time favourite investors, Benjamin Graham, proved this nearly 100 years - during the Great Depression.
When stocks crashed nearly 70%, Benjamin Graham didn't give up and avoid the stock market.
In fact, he saw this as a perfect opportunity to make money by pinpointing bargain stocks from... ››› more
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
You can spend a lot of time searching for stocks to buy.
You can study for hours and learn how to analyse stock charts and company's balance sheets. You can spend hours going over financial statements.
But if you're like a lot of people, you don't have the interest or the time. You've got a job and a family, and they keep you busy.
The good news is there's a shortcut around doing all t... ››› more
Let me be clear…
The investment I'm about to introduce to you is not for everyone.
It can be risky.
But if you're willing to take the risk, there's a handsome payoff for you!
In fact, history shows you could make you a +27% over the next 12 months.
The investment I'm talking about is…
If you’re not familiar, value stocks are compan... ››› 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
Disclaimer Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.