Over the past six months the JSE All Share index dropped over 11% on average.
The JSE's Resources index is down a whopping 28% for the same period.
Does this mean the losses are permanent? Should you be selling your stocks? Or does it show us an opportunity? The stock market is volatile – but that shouldn’t worry you too much
When stock markets drop, like they just have – it is due ... ››› more
The hardest decision one can make as a trader is this.
You sit at the computer after a clear trade has lined up…
And even though you should press the buy button.
By nature, most people are too worried about the “what ifs”.
WHAT IF there is: - An unexpected news announcement
- The market crashes
- Or maybe your second choice is the better trade…
These thoughts... ››› more
As a novice trader, it's easy to try and guess where the market's bottom is.
It's easy to see a bounce in a falling market, and assume that things are going up from here.
But calling a bottom is one of the most dangerous things a trader can do. In fact, with trading we say you're trying to ‘catch a falling knife'.
Most traders pile up their positions with a whole bunch of longs (buys) a... ››› more
Q. "Trader X recently sent out a Forex trade to short (sell) the EUR/ZAR. I am currently trading Forex CFDs and would like to ask how I can calculate the minimum rands risked per pip movement if I traded 5 CFDs. Do you have a formula to help with this?”
A. Hi John S, yes I can absolutely help with this.
... ››› more
It seems that uncertain times are ahead of us.
On the one hand we have the main stock markets crashing to new yearly lows.
Since March 2022:
The JSE All Share Index is down 9.6%
The SP500 has crashed over 14.6%
The Nasdaq has dropped over 20%
Also gold is down over 10% and some of the main crypto's like Bitcoin and Ethereum are down over 50%.
Some believe we are entering into a ... ››› more
If you've heard of ‘value investing', you may automatically think of Warren Buffett or Benjamin Graham, the man who coined the term - Value Investing - and, arguably the world's greatest value investor.
However, there's another person who revolutionised value investing, back in April 2000.
And he doesn't even invest!
He's a little-known accounting professor, who wrote a 57-page research... ››› more
Between 10 August 2021 and 20 September 2021, the JSE All-Share Index dropped 12.66%, the US Nasdaq was down around 7% from its September highs.
Basically the market is down - and it's the first sustained drop since November 2020.
Is this a market crash, or a time to buy?
You can find the full Article here:... ››› more
If you type in ‘value investing' in Google, you'll find numerous articles claiming “value investing is dead”.
It's no surprise investors feel this way.
Growth stocks like the tech superstars have by far been the biggest winners in recent years - significantly outperforming their value peers.
With the continuous advancements in technology, you'd expect growth stocks to continue th... ››› more
Rand strength over the last two months is now providing another opportunity for you to review offshore investment allocations. I'm always amazed at how many clients scramble for offshore investment after the horse has bolted and dither when they should take action.
Finova's global portfolio returned 2,65% in USD for the 12-month period to 30 June 2020, a period that includes the Covid-19 Marke... ››› more
I bought my first shares in the midst of the 2008 financial crisis.
My first buy was Old Mutual shares, and the price rose by more than 211% in the 18 months following my buy…
I rolled some of my returns into a property company, and an industrial stock - in the end I turned a couple thousand rand as a student into enough money to pay for my studies, put down a deposit on my first propert... ››› more
What a horrible start to the year.
Just four months ago most people were dreaming about all the possibilities the new decade held. The world's newspapers and blogs were full of what could potentially be coming in the next 10 years. The widespread use of driverless electric cars. The excitement and fear over the rise of a real artificial Intelligence. And the massive advances in healthcare scie... ››› more
Winston Churchill famously said:
“A pessimist sees the difficulty in every opportunity, an optimist sees the opportunity in every difficulty.”
I love that saying. Except today I'm changing it just a little:
“A pessimist sees the difficulty in every opportunity, an investor sees the opportunity in every difficulty.”
And that's what my piece is about this week.
Br... ››› more
Unless you live under a rock, you'll know global markets have fallen dramatically over the last few days. Many major indices are now in bear market territory, having fallen more than 20% from highs. Some sectors, like energy, have fallen even further.
It's total carnage out there!
But, if you're a regular reader, you can't say we didn't warn you about this…
Firstly, as many of my reade... ››› more
Mark Twain wasn't wrong when he said:
“History doesn't repeat itself, but it often rhymes.”
The more things change, the more they stay the same - this is true when it comes to the fear, greed and herd mentality in the markets... If you've been investing long enough you will see the same patterns on repeat.
Just think back to the 2007/2008 financial crisis…
I remember buying ... ››› more
If you're like most “information age” investors, you've probably taken a “do-it-yourself” approach to building long-term wealth.
I've seen many non-professional investors take this approach and, the truth is, it's rarely pretty.
Because there are three common mistakes people tend to make when crafting their own investment portfolio. And if you're making even one of them,... ››› more
Over the past year we've seen a number of factors drag the world economy down.
From the sudden cut in interest rates in September, to the ongoing war with Brexit and with the US-China trade war, to the oil output being decimated by a drone attack in Saudi Arabia…
We are now seeing the aftermath and the ripple effect, unfortunately hit home…
In fact, we had an announcement last week... ››› more
Recent poll numbers show that President Trump has lost some serious favour with his core constituency.
I can't say I'm surprised.
The trade war has hit American farmers hard. With the Chinese increasing tariffs on US agricultural goods, Chinese customers are no longer buying them.
And that means that Trump needs to act - and fast - if he wants any chances at securing a second term in t... ››› more
If you've ever watched The Big Short, chances are you know who Michael Burry is. He's the guy who figured out a bubble was forming in the US housing markets pre-2008. He also correctly predicted a market crash would ensue and made a ton of money shorting the housing market.
This week, he noted there are correlations between the bubble which formed in the housing market and Exchange Traded Fund... ››› more
Markets have been incredibly skittish over the last week.
And, while there are many reasons for concern, one of the main issues driving share prices lower is fear over the “inverted yield curve”.
If you skim the financial news, you'll see headlines like:
“Yield curve inversion hammers US small banks”
“Bond market yield curve inverts, signalling Fed may be too slow to cut... ››› more
“Alt season” in the crypto world, is when people take their gains from bitcoin and pile them into ‘alternative' cryptos, hoping for higher returns.
During the bull run of 2017, this action rocketed many top altcoins by hundreds, even thousands of percent. For instance,
• NEM grew 709% between 7 December and 4 January
• Ripple grew 1,508% between 7 December and 4 January
... ››› more
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