The US and global economies may have experienced their single-worst quarter in modern history…
Tech stocks may have been battered again…
But there's a growing optimism in corporate America - especially in tech.
The recent big acquisition announcements in the industry prove this…
5 Must-Watch Stocks f... ››› more
On 8 September South Africa's GDP figures for the second quarter of 2020 was released.
Our economy shrank by 51% annualised in the three months between April and June 2020.
This has put us into the longest recession in the past 28 years.
Sectors like mining fell 73.1%, manufacturing fell 74.9% and construction shrank by 76.6%.
This is bad.
But even though it was just released, i... ››› more
There are hundreds, if not thousands of economic indicators investors like us can look at to gauge how the economy is doing. Employment figures, GDP Growth, CPI, the Trade Balance, these are just a couple of the well-known ones. There are more obscure ones, like the Buttered Popcorn index, the R-word index or the Coupon Redemption index.
But you don't need to know all of these. In fact, there'... ››› more
SA's in a recession. The first quarter of 2020 saw a 2% decline in GDP. The SA Reserve Bank expects the second quarter to show a whopping 32.6% decline in GDP.
This is a full blown recession, and to try and cushion the blow we're now seeing the lowest interest rates in SA's history.
The prime interest rate is at a mere 7.25% compared to 10% at the end of 2019. That means a repayment on a R... ››› more
The economy is opening up again following lockdown.
Restaurants and hotels are opening their doors again, so it might sound like a good idea to take a bet on these companies share prices recovering quickly now…
But before you do that, just give me a moment to explain why these sectors, and specifically two stocks in these sectors aren't headed for a recovery yet.
___________________... ››› more
Did you know…
The US economy is in the deepest recession in living memory.
Also, the US Federal rate has dropped from 2.25%, taking the borrowing interest rate to 0.25%.
And yet, in the last quarter, the Dow Jones and the S&P 500 have baffled the world having the best quarterly rallies since 1998.
In the last three months, each stock market has surged more than 20%.
Now I don... ››› more
The gold price is up 55% in the past 12 months in rand terms!
In dollar terms its up 13% this quarter alone - making for its best quarter in years.
It currently hovers just below $1,800 - but all indications are that it will hit the $2,000 mark soon.
Discover: 103% gains on the table for savvy investors, thanks to this... ››› more
It's been an absolute roller coaster for the rand this year.
In January it was trading strongly at R14.50 to the US dollar.
In late April, we thought it was the end of the rand as it traded at R19.00 to the dollar.
And now, it's currently trading at R16.55.
I believe there's been two main causes for the rand's volatility namely.
South Africa entering into ... ››› more
This week we follow on with two more investment themes set to perform in the new economic reality, which will evolve post Covid 19 lockdowns.
• Alcohol & Tobacco
These are seen as defensive sectors and have been known to perform better than food in times of recession. The relaxation of alcohol sales by some countries in the SADC region from the beginning of June should see s... ››› more
You may have heard of the Butterfly Effect.
Chaos theory predicts it is possible for the flap of a butterfly's wing in China to cause a hurricane in the US. Though this sounds like fantasy, we may actually be witnessing one of the greatest “butterfly effects” in history.
A little while ago, likely in 2019, a single virus particle made a jump from bats to humans. In terms of scale, this... ››› more
Over the long-term cash isn't the best investment, it underperforms in times of economic prosperity. And impacts portfolio returns as it barely keeps pace with inflation. But in times of increased uncertainty and a stock market sell-off like we've just experienced…
Cash is King… Its value is less volatile than riskier assets. But you should be ready to deploy the cash when the time is rig... ››› more
March 2020, will be known as one of the most brutal months that the JSE and the equity markets have ever seen.
On 12 March, the index fell 9.51% and a further 11.98% on 16 March - two of the biggest daily drops since the 2008 Financial Crash.
CEO - JSE, Leila Fourie, said in an interview about the value drop and trade volumes:
“Over the past few weeks on average we've been processing... ››› more
Lots of people think of gold as a hedge against uncertainty. And that's usually the case.
But over the past two weeks, something odd happened in the gold market…
From 9 March to 19 March, the dollar gold price fell from $1,679 to $1,472.
If gold is the ultimate hedge against uncertainty, why then, did it fall double digits (over 12%) in less than two weeks?
... ››› 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
Yesterday marked the worst day for global markets since the 2008 financial crisis. This is on the back of the collapse in oil prices, down over 30% at one point, as Saudi Arabia notified its clients that it will sell oil at reduced prices from 1 April 2020. This is to protect its market share while demand is low.
This is effectively the second black swan to hit the market after the corona viru... ››› more
The gold price sits at R23,044 an ounce - with its recent all time high at R23,721 per ounce.
In early 2018 gold was below R16,000 an ounce. So the shiny metal is up around 44% in 2 years!
This is being driven by the weak rand, as well as a rising dollar gold price.
Within mere months I expect we will see the rand gold price hit R26,000 levels.
... ››› more
You can spend a lot of time searching for stocks to buy.
You can study for hours and learn how to analyse stock charts and company's balance sheets. You can spend hours going over financial statements.
But if you're like a lot of people, you don't have the interest or the time. You've got a job and a family, and they keep you busy.
The good news is there's a shortcut around doing all t... ››› 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
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
Today, we're going to forget about crypto prices…
The amazing blockchain developments…
The new crypto platforms like Bakkt…
And look at something I think every investor - or anyone - should know.
I'm talking about The REAL reason why bitcoin and cryptocurrencies are revolutionary inventions.
To explain, we need to go back to more than a century ago…
The beginning o... ››› more
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