Big Movers of the week
GOLD Stocks down 8,3%
The rollercoaster ride in Gold stocks continued last week, after bouncing the week before the Index was down 8,3%. Sibanye faired worst falling 13,7% while all the other major gold stocks gave up their recent gains.
MTN up 5,7%
Rebounding from lows, MTN was up 5,7% last week after a year of problems. The company has announced several heavywe... ››› more
What you're about to read might be great for South Africans, but not so great for the UK.
Just a few months ago I was in London burning my fingers from every purchase. At the time the GBP/ZAR was trading at R23.00 to one pound.
So every item of clothing, gadget and snack I bought in Regent Street was around four times more expensive than here in SA.
MC Donalds alone on average was around ... ››› 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
Pips, strength, weakness, ZAR, USD!
If you've watched Bloomberg, CNBC or sky news, it can be a daunting task to try and understand all of these jargon Forex terms.
But what If I could show you how to understand these currency pairs in a way you'll never forget it.
I'm not going to bore you with too much information. In fact, one chart is all we need to make sure you remember how to und... ››› more
In the early 1970s, companies like Coca-Cola, IBM, Johnson & Johnson, Pepsi and 46 others soared on the stock market. These companies were dubbed the “Nifty-Fifty”.
In simple terms, the “Nifty-Fifty” were a group of premier growth stocks that became market darlings in the early 1970s. All of these stocks had proven growth records, continual increases in dividends and high market caps.
... ››› more
When the results of the Brexit referendum came on Friday 24 June 2016, the rand fell more than 8% against the dollar. This was the biggest fall against the American currency since 2008.
The international impact of Britain's decision to leave the European Union is making it difficult for investors to figure out what to invest in next. If you're feeling confused, there is one market that still o... ››› more
Since the result of the Brexit referendum came in last week, investors have watched millions disappear from the companies in their portfolios. This week, it's the South African financial stocks that took the brunt of the impact.
- Nedbank (JSE: NED) is 4% lower this week
- Standard Bank (JSE:SBK) fell 4%
- Barclays Africa (JSE: BGA) also took a 4% knock
- While FirstRand (JSE: FSR) fell ... ››› more
When I heard the results of the Brexit vote last Friday, I was watching TV, clutching a cup of coffee and snuggling under a blanket with my sons in the diamond city, Kimberley.
As soon as the news bulletin ended, my phone started to buzz uncontrollably.
First, a message from my brother asking, “Did you see the Brexit result?” I ignored it. Then, a message from a colleague, “How could... ››› more
This week, the South African Rand is at its highest level in seven weeks. It's clawing back against the dollar trading at around R14.74.
I don't know about you but I certainly didn't expect the rand to gain so much ground. I must admit that I had severely negative outlook for the rand this month.
With the political unrest in Tshwane and a new wave of violent strikes in the country, I expect... ››› more
The Bidvest group recently unbundled its Food Service business and listed it separately on the JSE as Bid Corporation (Bidcorp) - share code (JSE: BID). Bidcorp received a warm welcome on its debut, kicking off the day at R270 a share and closing well up at R304 (giving it a massive market capitalisation of R102bn).
But let's recap quickly…
The reason for this unbundling was to create a ... ››› more
You already know that rumours of a recession are circulating around the investment markets.
2016 has been a tough year for the South African economy and the hard times don't look like they're going to stop any time soon.
Statistics South Africa shows that the economy is already down 1.2% for the year. We're in the middle of a drought and the price of food, electricity and water is steadily... ››› more
Standard & Poor's and Fitch ratings agencies is expected to give their verdict on the country's rating by the end of this week.
The financial analysts at FSPInvest believe that a downgrade to junk status is inevitable. Even if this doesn't happen this month, it will happen before the end of 2016.
Here's what will happen to the economy and your investment portfolio if the downgrade does happ... ››› more
Remember to fill your tank on your way home from work tonight. Due to the weakening and the price increase of petroleum related products on international markets, the price of petrol is increasing at midnight tonight.
The petrol proce will increase by 52 cents a litre and the diesel price will rise by 76 cents tomorrow. As long the rand continues to weaken against the dollar, you can expect th... ››› more
“The rand could hit R60 to the dollar by 2019: Chris Hart” - Business Tech
“Chris Hart: Nothing can prevent SA's slide to junk” - Fin24
I spoke to Chris about his recession and junk status predictions at the South African Investor member meeting on 24 May 2016. I asked him if he was misquoted in the media. However, he was adamant that he is right about these predictions.
One of the... ››› more
The situation is more serious than we thought...
As you'll see in a moment, it's become clear that South Africa is headed for a recession.
SA government economic policy has been doing very little to improve the state of our economy and now, the South African economy, consumers and investors are paying for the sins of our decision makers.
But all is not lost...
Due to the severity of... ››› more
Friday morning proved to be a good day on the JSE as it recovered from Thursday's sell-off which was triggered by news that US interest rates will increase sooner than expected. Global markets like the US and Asia are still struggling but the European markets joined the JSE in its recovery.
Considering that May is usually the worst month for the JSE, things are not looking as bad as investors... ››› more
The past few weeks have been harrowing for the rand.
It's been taking a severe beating from the dollar in the past two weeks.
Worst of all, rumours about the arrest of Pravin Gordhan has certainly not been helping matters at all. But, finally, it seems to have found a moment of stability. How long this will last, I don't know.
But let's take a closer look...
The rand is battered by t... ››› more
With the rand doing tumbles in the markets right now, you need a way to expose your money to international markets.
You see, by earning money in pounds or dollars, you're protecting yourself from the weaker rand here at home. In fact, you're increasing your investment returns. ETFs are a great way to get exposure offshore with limited risk and capital outlay. Today we've found you the ideal of... ››› more
Yesterday I warned investors that the rand will lose strength against the dollar because of the rumours that the Hawks want to arrest Pravin Gordhan for his involvement in the establishment of the SARS rogue unit while he was the tax agency's commissioner. As I expected, that's exactly what happened. But now, where to from here? Is it time for South African investors to be really worried? And wha... ››› more
This morning, the rand is trading at R15.51 to the dollar. In 11 days it's lost 54 cents against the greenback. This is only the beginning of the rand's fall.
If you think this is bad, keep an eye on the rand this week. I expect to see a significant weakening against the dollar thanks to new rumours in the media related to the arrest of our finance minister, Pravin Gordhan. “Pravin Gordhan fa... ››› more
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