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.
... ››› more
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
While October was the month we had Black Tuesday in 1929, Black Monday in 1987 and a big sell off in October 2008 post Lehman's collapse, it generally ends the month up.
Over the past 100 years the Dow and S&P have ended positive 62% of the time with an average gain of 0.4% but with heightened vola... ››› more
It is every trader's goal to be able to accurately predict where markets are heading.
And it's been my mission this year to find a reliable indicator that can predict where the JSE ALSI Top 40 is headed.
After plotting a whole bunch of indicators, relative strength oscillators and indices, I think I've done it.
And it's all thanks to Japan.
Today I'll discuss this predictor, wh... ››› more
Following on the theme of buying shares at a discount, today's company is trading at a discount to its net asset value as well as paying over 6.5% in dividends.
You will get paid to patiently wait for the company's share price to return to a premium to its net asset value (NAV).
The biggest reason for the discount is that it failed to comply with credit regulations in the past. These issues... ››› more
Buying shares at a significant discount provides some downside protection.
Knowing you bought R1 of assets for 79 cents gives you comfort, and one investment holding company is trading at exactly that.
While investment holding companies typical trade at a discount to their some of the parts value, when these companies sell or distribute assets, the benefit is received at full market value.
... ››› more
Emerging market currencies are losing ground against the majors, giving international investors more “bang for their buck”. The latest bout of weakness comes on the back of CPI in Turkey spiking to 18% and PPI to 32.1%. International investors will not be rushing in just yet as they await a week full of data from emerging markets.
... ››› more
Global markets are riding a rising tide of positivity from hawkish FOMC meeting minutes, US Fed Chair Powell indicating the US economy is strong and a positive US and Mexico trade deal.
Investors shouldn't fear new record highs because historical market data indicates it's a bullish signal. When a new all-time high is achieved, there is a 90% chance of achieving a new all-time high in the four... ››› more
The rand lost 4% of its value in mere days last week.
At the same time, between 13 and 15 August the JSE lost 4% of its value.
As uncertainty at home and abroad causes this kind of volatility, there's a simple kind of investment that warrants a place in portfolios.
I'm talking about dividend paying stocks. The appeal is simple, dividend payers can provide investors with tangible returns (... ››› more
Did you know in a 200-year period, nothing has come close to matching the long-term compounded returns of stocks?
In a study conducted by University of Pennsylvania finance professor, Jeremy Siegel,
showed that every $1 invested in:
• Treasury Bills, grew to $5,061
• Bonds were worth $18,235
• Gold rose to $32.84 204
And stocks returned a phenomenal $12.7 million.
But do... ››› more
For the last four years, this index has been sitting in my “TBTT” (Too Boring To Trade) list.
It's done absolutely nothing but consolidate in a sideways trend since 2014.
Until last month… where it broke out of its chains and started an entirely new trend - up!
This is now one index that's no longer too boring to trade- I see some significant profit opportunities lining up.
... ››› more
On 13 August Wescoal, a small coal miner on the JSE, had sales equaling to 3.5 million shares for the day.
This is roughly equal to 18 times the average shares traded per day - for the last year!
Clearly there was major interest in the company…
And, considering that volume trade in the company is 30% higher since July than it has been for the past year you'd be right to guess there's so... ››› more
Take a look at this chart...
See the big fat flat red line – that means the JSE is going nowhere fast. There is no strong rise or fall. In fact, you might say its flat lining.
For a trader, we call this a sideways market and this is the perfect picture.
Above is the daily JSE All Share Top 40 Index chart since January 2018!
Anyone... ››› more
The JSE has remained buoyant after falling due to the ANC's EWC announcement last week. It's been range bound since breaking above its previous consolidation phase.
A rally into year-end is still on the cards thanks to several JSE heavy weights earning significant offshore revenue.
Stronger global growth and a rand that is facing headwinds into next year's elections should see earnings inc... ››› more
The JSE was one of the few markets that ended last week lower. The Rand strengthened on the back of China being more passive in the “Trade War”. Commodity prices also pulled back last week causing the resources sector to impact the market performance. We've given up all the recent gains and are back in buying territory.
SA equities are cheap when you compare the median P/E ratio of the All... ››› more
After a wild two weeks, the Top40 is quickly approaching a key resistance level as the US dollar softens. This is on the back of US Jobs data that signals the Fed will hike gradually and that “Trade War” fears have subsided.
This risk on sentiment has seen investors buying the dip and remaining bullish. Last night we had the Dow up almost 1% and the S&P up 0.70%. This will provide some sup... ››› 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.