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Low Economic Growth

  • Inflation is back. What to expect, and how to deal with it…
  • Last week the Federal Reserve pushed US interest rates up by 0.75%. This was an attempt to fight inflation which has risen to multi-decade highs. By raising interest rates, the Fed hopes to slow economic growth and stifle employment. This will reduce the demand for goods and services within the economy and (hopefully) get inflation under control. It's important to understand reducing growth,... ››› more
  • [30 June 2022]
  • Last week, I warned investors about this “income-trap” and it just crashed 31%!
  • 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
  • [09 December 2019]
  • Is it now time to bail on JSE listed stocks for good?
  • The JSE is down 3.95% for the past three months, 5.13% in the past six and we're only up 8% over the past three years. With politics the way they are and the performance of the South African economy many investors are asking whether they should bail on SA listed stocks for good. I'll give you my take on the situation now, let's first have a look at the facts: SA’s economy is already... ››› more
  • [16 October 2019]
  • Have you missed your chance to move money out of the country?
  • The rand has collapsed over the last two weeks. It moved from below R13,90/$ to worse than R15,30/$. That's more than 10% weaker in a fortnight. Obviously, many of you are worried you've lost your chance to get money out of SA at a reasonable exchange rate. The question on everyone's mind: Should you get out now or wait for a better level? The only way to answer this question is to look f... ››› more
  • [15 August 2019]
  • The proven five-step strategy ANY first time investor can use to buy their first share
  • When I began investing, I used to buy and sell shares without even knowing exactly what the company did. And my game plan couldn't have been more straightforward: If the share was moving higher, I bought it. If the share was falling, I sold it. I simply didn't care about the economics of a company. This wasn't much of a strategy though. In some cases, it would work but it certainly never g... ››› more
  • [22 September 2017]
  • Pravin Gordhan believes South Africa will dodge another recession
  • So far this year, you've heard the word recession a lot. It's a real threat to the economy right now. The third quarter of 2015 saw 0.7% gross domestic product (GDP) growth - the fourth quarter saw 0.6% GDP growth. Results of the first quarter of 2016 shows the economy contracted 1.2%. Economists expected the economy to contract only 0.1%, which leads me to believe that nobody really knows... ››› more
  • [28 July 2016]
  • Investing for attractive returns could be an investor's worst mistake…
  • Recently I came across an article on MoneyWeb with the headline, “Preference share offering 14.5%”. Preference shares returning 14.5%? I've only really seen a preference share offer investors around 10% and that's Grindrod, which is a solid proven company. So I was sceptical when I read this headline and I immediately investigated how this investment was offering such a good yield. ... ››› more
  • [23 May 2016]
  • Chances are the Reserve Bank will keep interest rates unchanged
  • Tomorrow afternoon, the South African Reserve Bank's monetary policy committee meeting will conclude. Will the committee decide to hike rates or will it keep then unchanged? Let's take a look… Interest rates may rise in November Thanks to the US Federal Reserve keeping its interest rates unchanged last Thursday, it looks likely that the Reserve Bank will follow its lead, reports F... ››› more
  • [22 September 2015]
  • The ANC plans to revive the economy
  • Despite the African National Congress (ANC) clinching the vote after South Africa's fifth general election, they did so by the smallest margin in 20 years. Over the weekend, the ANC says it plans to revive the ailing South African economy. Let's take a closer look at how the ANC plans to do that… The ANC sees its support fall The latest general election highlighted that the ANC is losing its... ››› more
  • [26 May 2014]
  • With interest rate hikes likely later in the year, ensure you can afford to repay your debt
  • This afternoon, Gill Marcus, the governor of the South African Reserve Bank said that interest rates will remain unchanged. The next decision over interest rates is due to take place in May. Ms Marcus said that hikes are likely as the year progresses. After interest rates being so low for so long, now is the time to ensure that you can keep on top of your debts and loans if interest rates take a j... ››› more
  • [27 March 2014]
  • ABIL's earnings plummet dragging its share price with it
  • Earlier today, African Bank Investments (ABIL) released a trading update about its results for the year to the end of September. In the update, the bank warned that it expects earnings to fall up to 90%. This follows a trading update last month warning of a drop of 63%. Let's take a closer look at what's going on… This morning, ABIL said that its earnings for the full year are likely to tumble... ››› more
  • [25 October 2013]
  • Business confidence drops as strike action intensifies
  • Earlier today, it emerged that the RMB/BER business confidence index (BCI) had slumped. The index showed that three fifths of its respondents were not happy with business conditions at the moment. Let's take a closer look at business confidence in South Africa… Rand Merchant Bank (RMB) and the Bureau for Economic Research’s (BER) business confidence index fell “by six index points in the t... ››› more
  • [03 September 2013]
  • JD Group's profit slides 10%
  • Earlier today, JD Group released its results for the full year to June. The company's profits are down as consumers feel the squeeze. Let's have a closer look at what the results showed… JD Group “reported a 10% drop in full-year earnings,” reports Fin24. The company has also increased its “provision for bad loans,” as indebted customers “continue to suffer”. Headline earnings p... ››› more
  • [26 August 2013]
  • HSBC disappoints the market as profits come in less than expected
  • Yesterday, global banking giant HSBC posted its interim results. But the results were short of analyst expectations. This led to losses in its share price. Let's have a closer look at what the results revealed… British bank, HSBC, announced its half year results yesterday. The bank said its net profits rose by 22%, reports IOL. This is down to “lower costs and falling bad debt charges”.... ››› more
  • [06 August 2013]
  • The producer price index leaps higher
  • Earlier today, Stats SA released its figures for June's producer price index (PPI). And unlike yesterday's consumer price inflation, which was less than expected, PPI jumped much higher than expected. Let's have a closer look… South Africa’s producer price index (PPI) for June rose “more than expected to 5.9% year on year,” notes IOL. This is an increase of 1% from May. The producer p... ››› more
  • [25 July 2013]


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