If you've been following mainstream economic news over the past month, you'll probably think the world is in a much better place. You'll have heard about a variety of drug trials on Covid-19 vaccines.
News from companies like Johnston and Johnston, Merck, Moderna, Novavax all seem to be buoying investor sentiment.
The slightest hint of a potential solution to the Coronavirus problem and ma... ››› more
Speak to any financial advisor with half a brain and he'll tell you to go offshore.
Sure, South Africa may one day reclaim our early 2000 title of “investment darling of the emerging markets”, but it's not going to happen any time soon.
Our problems are simply too big. There's is no quick fix to Eskom, our ever-increasing sovereign debt or our 29% unemployment rate. So yes, that means ... ››› more
Electricity is fundamental to the way we live our lives. You simply can't live without it. Just consider the disastrous effect of load shedding this past week.
Roads in chaos, stockpiles of food rotting in refrigerators and many downstream services just grinding to a halt.
And yet, if you look at the big picture… And, I'm talking the development of mankind “big picture”, we've only h... ››› more
If you've been following the news, you'll know that Moody's recently changed its outlook for South Africa to negative. That means our sovereign debt is one step away from ending up in the dustbin.
If that happens, it'll have far reaching consequences for SA Inc. and your locally-held savings and investments.
This isn't something you should take lightly.
You need to protect your hard-ea... ››› more
Q. “I keep seeing special offers for signing up for Forex and trading brokers. I don't want to make a mistake and choose the wrong one. Do you have a list of requirements to make sure I choose the best broker for me?”
A. I am glad you asked this question.
My social media platforms have also been filled with advertisements from brokers that are offering different ‘Black... ››› more
Naspers result are due on Thursday and we should see buyers push the share price higher into year end.
Yesterday's trading update provided some insight into what to expect as it highlighted core earnings from continuing operations will increase between 7% and 10%.
Last week Tencent released results, and while it didn't excite traders and investors, it highlighted that a maturing business c... ››› more
Last week, the US Federal Reserve finally cut interest rates again. The rationale behind this move is to help sustain US growth.
Now the quarter-point cut marks the third rate cut this year. And this can be good news for stock investors. In fact, following the latest announcement, US stock markets hit new highs.
But even better….
If history is anything to go by, we could see US stock... ››› more
Last Friday, ratings agency Moodys dropped their outlook for SA debt from stable to negative. This means within the next 6 to 24 months it's likely we'll see the last of the three major ratings agencies cut our government debt rating to junk.
As an economist, I am now all but certain the downgrade will happen. SA will become a junk status borrower.
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With business confidence in SA at its lowest in twenty years. And investors losing patience waiting for the sun to rise for the “New Dawn”, we're seeing more and more people taking money offshore.
While most people taking money offshore won't be aware of foreign inheritance taxes, they are creating a potential estate liability problem for their heirs. USA and UK inheritance tax can be as ... ››› more
The rand has collapsed over the last two weeks. It moved from below R13,90/$ to worse than R15,30/$. That's more than 10% weaker in a fortnight. Obviously, many of you are worried you've lost your chance to get money out of SA at a reasonable exchange rate.
The question on everyone's mind: Should you get out now or wait for a better level?
The only way to answer this question is to look f... ››› more
It's been a tough few weeks for South Africa.
It all started when finance minister, Tito Mboweni, unveiled yet another bailout for Eskom. The R59 billion taxpayer band aid then spooked international investors and prompted announcements from ratings agencies Fitch and Moody's.
Both echoed the usual concerns about slowing growth, rising government debt and the inability of our policy framewo... ››› more
The rand has only just broken back below the key R14/$ level and I can tell from the client flows going through our treasury desk, many South Africans are once again keen to get money out of the country.
The USD/ZAR exchange rate was well over R15/$ just a few weeks ago.
This means, the rand has firmed up around +7.75% in the last month-and-a-half. Put another way, that's about a year's wo... ››› more
The Rand has staged a stellar rally. Strengthening from above R15 against the USD to below R13.90. It came within half a cent of our R13.8550 target against the USD but the price is consolidating. It's time to bank our profits after a 6.24% gain, with gearing your gain could have been more than ten times larger.
Trading the other way and going long the USD against the ZAR has good risk to rewa... ››› more
The US markets are closed today for the 4th of July public holiday. And, to celebrate our American friends' Independence Day, I thought it would be an excellent time to look at one of the most successful companies to come out of their capitalist democracy: Microsoft.
Why I think these gold shares could make 2019 the most profi... ››› more
Bidcorp's attempted breakout above the R320 per share resistance level failed, this is the third time since 2017 that Bidcorp's share price failed to move above R320.
The share price has pulled back over 3% with further advances unlikely, investors should look to lock in profits as the share price is on a standard deviation of 2.4. This signals a pullback is likely, and a retracement has starte... ››› more
This Thursday is futures closeout from 12h00 until 12h15. During this time the market is in an auction as the June derivative contracts close with a final mark to market price. Typically, closeout presents many profit opportunities as banks, hedge funds and traders manage their positions. Their aim is to maximise profits on some positions and reduce risk of loss on others.
Stocks to watch are ... ››› more
Take a moment to look at following logos:
Behind these logos are some of the strongest, blue-chip companies on the planet.
These global companies have such a broad reach that even today, at the tip of Africa, you’ll likely recognize some, if not most, of the brands.
6 Shares... ››› more
The Rand has been one of the strongest EM currencies in the past few weeks, but the strength will be short lived. The Rand has been boosted by a dovish FED, an ECB trying to balance monetary policy and economic growth, and the easing of Trade War fears. But all the positives are fickle and cautious investors should be looking a few steps ahead.
Investors looking to diversify off... ››› more
President Trump sent global markets roaring higher after he and China's President Jinping agreed to de-escalate the tit-for-tat tariffs. It's only for the next three months, but signals Trump is realising the potential damage he is causing to the US economy.
This is good news, when you consider Fed Reserve Chair... ››› more
The GEPF recently announced that it plans to invest more of its funds offshore. This move could have a massive negative impact on South African financial markets.
How big a negative impact?
As much as FIVE times worse than the country being downgraded to junk status.
Some of you ... ››› more
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