As we start the new year, I am pleased to announce my first structured pick for 2019.
And it’s a good one. Here are the highlights. It:
1. Has a 112% capital guarantee (in US Dollars),
2. Is fully offshore (again in US Dollars),
3. Gives you 200% of the index performance (uncapped),
4. Is guaranteed by a Fitch A-rated bank,
5. Is wrapped in a tax-effic... ››› 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
Just a few years ago, trading offshore was an absolute nightmare.
Not only did you have to physically take your money out of the country, you also had to endure these five tedious experiences:
~ $2,500 minimum deposit
~ Endless paper work to fill in and sign
~ Limited access to instruments and control of the portfolio
~ Over a week to withdraw and deposit funds
~ Costs through the roof
... ››› more
Today I offer you this invitation to invest in our new unprecedented service.
This opportunity will allow investors to experience the profitable world of trading.
The only difference is you won't be in it alone… You will have backup of a 15 year experienced trader who has absolutely no conflict of interest.
In fact, this trader in particular has managed to put R824,000 into his pocket i... ››› more
As we enter 2018, many people are looking to diversify their portfolios.
Normally this would be an ideal time to invest offshore, but unfortunately offshore markets are at record highs. So it's difficult to find any value.
At the same time, staying in cash is not viable with global inflation edging up slowly.
So how can you diversify offshore without putting too much of your money at ... ››› more
Q. Which broker can I trade offshore CFDs and do I need a lot of money?
A. Just two years ago, you needed around $2,500 (R34,000) to open and trade offshore accounts.
Fortunately for you, those days are long gone.
We understand that finances are tight nowadays. And with the ever increasing costs of transport, food and living expenses, we've tracked down the most affordable offshore broker... ››› more
Over the last year, the one question I have been asked more than any other is…
“How do I invest offshore?”
Today, I'm going to answer that question and show you how to invest offshore in three easy steps…
The Bitcoin Lie: Discover what could really happen to cryptos in the next 12 months and beyond… Click here now to claim your FREE copy.
Step #1: Determine how ... ››› more
Commodities take a step lower
Brent oil led the commodity basket lower last week, losing 8,1%; Platinum and Gold were down 5,7% and 2,4% respectively.
Although the Rand softened, the pressure was too much for the JSE All Share Index which fell 0,8%. Resources fell 5,5%, but the rest of the sectors held up well.
International indices were slightly softer across most time zone... ››› more
Since my last article on the subject of structured products I have received a number of enquiries from readers asking for more information. Due to the overwhelming response I decided to do this follow-up article and go over the most frequently asked questions.
First, for those who may not have read the original, here is a brief recap. I discussed a currently available structured product with ... ››› more
“Triple Witching” refers to the combined expiration of the Index futures, Index options and stock options. In the UK and US this happens on Friday's, but in SA it happens a day earlier on Thursday. The event typically creates increased market activity and in some cases volatility.
Global markets were relatively subdued for last week's expiry, the US, UK and European majors were firmer by b... ››› more
The news yesterday that several ministers have been recalled to SA has created some consternation; the Rand jolted back 3%. There is speculation of a cabinet reshuffle and/or further legal developments relating to the impasse between Treasury, Banks, and the Gupta's…...
The new Mining Charter is expected to be released this week. And the market is bracing itself for new challenges. This just... ››› more
Admittedly, I expected more movement in the Rand once the cabinet reshuffle was announced. We have a saying that “the Market always knows” which seems to apply in this case.
When Mr. Nene was removed, the Rand fell 8,5% within the first few days and then extended those losses by another 10% a few weeks later. By comparison the Rand has loss only 7% so far, perhaps the Market knew that SA I... ››› more
Around decades ago, offshore investing was only available to ultra-high net worth investors; but we've come a long way since then.
Now you can invest in markets across America, Asia, Africa…you name it.
And this makes the idea of offshore investing not only interesting, but downright exciting too.
However, just as there are endless opportunities out there for you to choose from, ther... ››› more
I call it the “offshore investment conundrum”. Investors have no clue where to invest or what to invest in, leaving their cash exposed to unpredictable economic and political events. Investing in just any old offshore product will cost you time and more importantly, money.
While I admire the ambition of investors to identify opportunities elsewhere, the fact of the matter is, over half of ... ››› more
US interest rates on the rise.
Fed Chair Janet Yellen provided testimony last week indicating a high likelihood of another US interest rate hike in March. The markets are now pricing in a 0,25% hike. The US dollar is strengthening again.
Local markets were flat over the week. The All Share squeezed out a gain of 0,1%, Resources were similar and Industrials down marginally (0,5%), Fin... ››› more
Imagine a country with massive amounts of natural resources.
The richest economy in its region.
However, there are signs of trouble, including rising inequality and societal unrest.
To combat this the government is turning to populism by taxing the rich, confiscating assets and dramatically increasing the redistribution of funds to the poor.
This is not South Africa in 2017 I am t... ››› 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
When you think of Europe's fastest growing economies, who comes to mind?
Switzerland?, Germany?, maybe Netherlands?
No it's none of them.
The fastest growing economies in Europe consist of countries you don't hear much about in the news. I'm talking about Malta, Luxembourg, Romania and Poland.
These countries' economies are expected to grow more than double the Eurozone's in 2016 and b... ››› more
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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.