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
What a month it's been, especially last week!
We saw giant companies like Tongaat, Lonmin and Basil Read suspend their shares.
These are companies that have been around 30 to 127 years and now they're being taken off the JSE.
And despite this mass culling, the JSE is still rising to new highs.
In this article we'll briefly catch you up on what happened in June with the m... ››› more
Investec have introduced FTSE100 Auto Call, a five-year structured product providing an 18% return per annum if the index is positive. The product can mature (Auto Call) if the index is positive on the third, fourth and fifth anniversaries provide the index is positive. You could receive 54% after year 3, or 72% or 90%, after year 4 or 5 respectively. That's even if the index is up just 1% over an... ››› more
Before Donald Trump escalated trade wars, which sent shockwaves through the markets, stocks were performing well overall.
The major US indices like the Nasdaq and S&P500 were flying.
Even the JSE All Share was showing good returns. From its lowest level to its highest, the JSE was up around 14%. A great comeback from 2018's negative return.
However, while stocks were making all the ... ››› more
Last week we discussed how after a national SA election there is always a rally on the JSE in the following 12 months.
If you missed the article, you can catch up here.
In today's article however, I would like to follow up and explain why I expect a strong rally despite the carnage that is taking place in the international markets.
_... ››› more
Q. "Timon I am ignorant when it comes to trading CFD's. I understand the basic principles as I have traded Forex before, but I do not know where to find a CFD platform and I don't know what CFDs to trade. Can you please help?"
A. We have two main recommended trading platforms you can use to trade CFDs. You can see them by clicking here.
With regards to what CFDs to trade, yo... ››› more
The elections have once again come and gone.
I trust that you made your contribution to the country, which has left a memorable mark on your thumb which could help define our future.
Talking about voting, I was curious to see what effect the elections have had on the JSE over the last 17 years.
In today's article I want to discuss, two main points which you might find lucrative for yo... ››› more
On Wednesday 27 February we watched and heard the 'Kudu Horn' blow, as we witnessed MultiChoice Group (JSE: MCG) listing on the JSE at just R95 per share.
We knew this was coming as parent company, Naspers announced the unbundling of MultiChoice in September 2018.
MultiChoice has come a long way. With its subsidiaries including, Showmax, MultiChoice Botswana and MultiChoice Namibia to na... ››› more
Q. “I want to start to trade Crypto-currencies. I heard that I don't need to worry about ECNs ever again. I don't even know what an ECN is, let alone worry about them. Could you explain this in layman's terms. I find that the definitions on the internet, are far too complicated to understand?”
A. I'll try to explain what an ECN is with an easy to understand analogy.
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Imagine this… You could've bought Capitec shares at R26 a share in 2008.
In the past year, the company paid investors R15.75 in dividends. That means 60.50% growth on your original capital JUST FROM DIVIDENDS.
If you add up all the dividends since 2008, investors received R69.88 in dividends. That's 268% growth from dividends alone.
In fact, a study of dividends and returns on shares... ››› more
I'm sure you're thinking, WHAT!?
Normally when you hear of a bearish pattern, you'd expect a market to drop in price.
So how can I expect the JSE to rise?
Today I'm going to explain my unusual prediction on the JSE and how you can bank a 664% gain.
If you missed the gold prediction then you still have a chance to bank a 489% gain from the rise in gold - Go here.
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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
Irving Kahn was the oldest active money manager on Wall Street before he passed away.
He was born in 1905 and in 2002 he said that he was still working through the night finding great stocks.
But more than his work ethic, Kahn was known for the fortune he made during the ‘Great Depression' in the 1930's.
Kahn began working on Wall Street in 1928 during a roaring bull market and becam... ››› more
Q. “Hi Timon I want to set a few trading resolutions for 2019, can you please tell me five achievable ideas so I know what to do?”
A. I always have five trading resolutions which help me kick off the year. Here they are.
Resolution #1: Only take trades when your trading strategy gives you signals
Most people try to trade on intuition and base their trading signal... ››› more
Most investors are losing patience with the JSE as returns have been non-existent.
The JSE All-Share index is back in it's previous trading range - which is pretty much 2014 levels.
The problem with investors losing patience and selling, is they do it at precisely the wrong time.
The Magellan fund managed by Peter Lynch achieved a remarkable 29% annualised return between 1977 to 1990 b... ››› more
In 1954, 24-year-old Warren Buffett received a phone call that would ultimately change his life.
The person on the other line offered Buffett a job in New York City and he accepted without asking about the salary.
It was arguably the smartest - and most profitable - decision he ever made.
That's because Buffett knew the man who had just employed him. A man he studied under at Columbia Uni... ››› more
AB InBev (ANH:JSE) has steadily fallen from it's R2,000 high in Feb 2016 down below R1,100 today. The fall is as a result of them processing the massive take-over of SAB, the Rand strengthening and the market pricing in a dividend cut in the full-year results to December.
ANH's emerging market exposure will provide it with superior growth over the long-term, and with Trump likely to strike a tr... ››› more
Last week, Richemont (CFR:JSE) announced its joint venture with Alibaba. An opportunity for mass distribution like this could see Richemont's sales soar over the coming years. Especially in China, where Alibaba has a strong presence and China is expected to account for nearly 50% of the luxury goods market in the next six years.
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You've probably never heard of Abraham Germansky and Jesse Livermore. Both were investors nearly 100 years ago.
Abraham Germansky was a multimillionaire real estate developer in 1920s. He also loved stocks, investing heavily as the market boomed. But when the crash of 1929 unfolded, he was wiped out.
After that he disappeared.
On the other hand, Jesse Livermore had a very different experi... ››› more
When the market opens today it will officially be in a bear market as the JSE extends the recent sell-off on overnight weakness offshore.
Most of this sell-off has been driven by global politics and rising interest rates in the US, with other developed markets to follow suit.
Retail investors are yet to “Panic” about the value of their portfolios.
... ››› more
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