News flow seems to have subsided for now, markets continue to grind gradually higher. The JSE added 1% last week on the back of stronger commodity prices; Brent recovered 3,4% after trading softer for several weeks.
Internationally, markets continue in a holding pattern; testing new highs. Commodities are responding to a weaker dollar and US Markets stumbled for the second time on new challen... ››› more
Every morning when I am about to start trading the financial markets, I have a pre-trading routine checklist I follow before I take a trade.
It's become a consistent trading routine I've followed for the last 14 years.
This is a checklist you'll simply follow as a professional trader, before you take your first trade.
It's worked for me and maybe it will work for you too.
Here it is... ››› more
Last week's interest rate cut of 25 basis points (0.25%) has boosted retailers and shares with high debt levels. Improving sentiment and the prospect of a boost to economic growth provided support for the Rand.
Earning season is in full swing, as of Friday, 19% of the companies in the S&P 500 had reported results for Q2 2017 and 73% had beaten earnings and sales expectations.
In the we... ››› more
The JSE's rally from late June accounts for all the growth we've seen this year.
The bullish tone is threatening a break above the trading range which has confined the market for more than three years.
As in common at this stage, small caps and midcaps have lagged significantly and we expect them to play catch up.
Mid-caps to consider include: MicroMega, Santova, AdvTech and AECI.
**... ››› more
If you're serious about making a consistent income on the markets, you'll save today's article and work through it carefully at your own pace.
I can thank Johan, one of my Trading Tips reader's, for posing this important question on how to go from opening your trading account to actually taking real-live trades.
Enjoy…
“Hi Timon, I've just subscribed to Trading Tips and am interest... ››› more
The Budget was delivered without too much fuss. Everyone knew there would be a “Gap” and the balancing act was to find a suitable filler. The new tax bracket was a bit of a surprise, but the hiking of the marginal tax rate was expected. Never the less bracket creep was significant so everybody shoulders the burden.
In SA, the market fell 1%; Gold shares were under pressure as the Rand held ... ››› more
The state of our nation
A strong rally on Friday reversed losses on the JSE and helped the Top 40 close the week up 0,75%. Financials gained 2% while Industrials and Resources were marginally higher.
Markets continued to respond positively to the Trump administration's rhetoric, particularly regarding lower taxes. Data from China and Japan supported the market rally. The Nikkei rose 2,5% a... ››› more
Trump in the White House - America First!
As President Trump was being inaugurated the markets appeared to be waiting for direction. The JSE closed slightly lower, down 0,6% and the major developed markets were little changed if not slightly softer. Currency and Commodity also appear to be in a holding pattern.
Trump's speech was direct and unambiguous, watch-out as America puts its foot... ››› more
Last week, we discussed how through one simple switch we managed to save our clients a cumulative 71% in 2016.
But this year we're going to try and do it again. So let's compare the investment cases of The Foschini Group (TFG) and Woolworths (WHL).
These companies share similarities in that they're both involved in apparel retailing in South Africa but have very different strategies when i... ››› more
JSE up 3,3%
Last week the JSE recovered from an oversold position to close the week with a gain of 3,3%. Financials gained 4,8% and Industrials were up 3,7%. Resources managed a gain of 1,5%.
DAX up 6,6%, CAC up 5.2%.
European markets breathed a sigh of relief as the Italian referendum failed, the Dax gained 6,6% and the CAC 5,2%. Italy was up 7,3% and Spain put in 6,5%
US Markets... ››› more
Dischem is due to list on the JSE on 18 November 2016.
The company shared that it'll probably list at a price of R16.25 - R20.25. If demand for its shares is too high, it could increase the listing price.
Now, I must say, Dischem is a great business. It's doubled its number of stores since 2010, and tripled them since 2008.
It's clear that Dischem can take major market share from other co... ››› more
Right now, there are at least 26 suspended shares on the JSE.
If you own one of them, you'll know you can't sell your shares and there's no hope of growth coming from them.
If you're incredibly lucky you might receive cents on the rand for your investment.
But, if history is anything to go by, your cash will be tied up for years, and you might as well write off your entire investment!
... ››› more
GOLD Stocks up 4,6%
Gold stocks bounced back, following a sharp selloff in the Gold price over the previous two weeks. It found support at $1260, which gave local stock some relief.
British American Tobacco 4,8%
Quarter 3 results from the Tabacco company were strong and the company has announced that it will buy out the rest of Reynolds America for $47 billion. The stock retreated on conc... ››› more
On 29 September 2016 Wescoal announced it would issue 124,995,373 new shares to a BEE investor, for an amount of R211,410,862.
At the time Wescoal's entire market cap was R440 million. So this is a big deal - it is nearly 50% of Wescoal's total share capital being added.
Usually a deal that dilutes earnings as much as this one will, is a bad thing.
Shareholders don't like it.
But since... ››› more
I'm sure you've seen what too much sugar does to a three-year-old…
They become hyper-awctive. They stop listening to all reason.
And as soon as the effect of sugar wears off, they hit a low. Until the next hit of sweetness.
You might be doing the same thing to yourself when you invest.
No, it's not that you're adding too much sugar to your coffee.
The mistake you might be mak... ››› more
Mention Coca-Cola, Wal-Mart and Johnson & Johnson and the first thing that might come to mind is…
They're some of the biggest and leading companies in the world.
They're popular brands around most parts of the world.
And they've made plenty of savvy investors very wealthy.
For example, A R10,000 investment into J&J shares in 1970 would be worth in the millions today.
And if y... ››› more
I'm not about to go into a political rant about the violence on university campuses or about the pros and cons of having free higher education for all.
No.
What I want to talk about is the newest campaign that just happened - on the back of #FeesMustFall. It's called #DataFeesMustFall!
Thousands of people are unhappy with the data fees they're being charged by South African cell phone ... ››› more
In 2013 I warned investors that African Bank's drop in profits was the first ‘symptom' of a slow puncture for the South African Debt Bubble…
I told investors I believed many of the unsecured lenders and credit retailers will get themselves into trouble, but Capitec would prevail.
At the time African Bank traded at R22 a share.
By early July 2014 I called African Bank's imminent bankrupt... ››› more
Investors will search high and low to discover the real secret to what generates wealth in the long term.
Today I'm going to tell you the answer is simple.
Professor of Finance at the University of Pennsylvania and well-known market commentator, Jeremy Siegel did a comprehensive study to discover the best investments over 188 years.
And what he found proved, that one particular asset outp... ››› more
Do you walk into a room full of investors and struggle to understand what's going on around you?
Are you lost in the jargon and anxious that someone is going to ask you a question, you just can't answer?
Well, if that sounds like you then I have some good news.
You don't need to play second fiddle to your investment advisor, your broker or even your smarty-pants friends. You don't need t... ››› more
Home
Search
Menu
Our products
