Even though I started my investment ‘career' during my university years, I still wish I had done so earlier.
Even a year or two, well timed, can make a world's difference. There was so much money I wasted on games, gadgets and expensive clothes…
Possibly the most important investment idea not to miss out on…
Investment Idea #1 - The earlier you start - the more you will end up with
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“The South African economy is BOOMING.”
“The South African economy is BLEEDING.”
Both these statements are true at the same time.
South Africa's economy is back at the size it was before the coronavirus pandemic struck, after growing faster-than-expected in the first quarter.
Gross domestic product expanded 1.9% in the three months through March, compared with revised growth of... ››› more
Electric vehicles (EVs) are becoming more popular.
Nearly every automaker is debuting at least one new EV model this year.
These models range from affordable sedans to luxury SUVs to super trucks.
By appealing to every type of car owner, EV growth should exceed most forecasts.
But this growth also comes with concerns over the supply of key battery materials.
The ones that dominate t... ››› more
It looks like things are finally heading up with the world's markets since Russia invaded Ukraine in late February.
In fact, from the middle of February 2022 we have already seen the markets move up including:
7.6% for the JSE All share index
11.2% for UK's FTSE 100
8.8% for the Dow Jones 30
But that's not all…
The star index that I see major upside to come is showing the most prom... ››› more
Following a shocking 2020, we had a strong economic recovery in 2021.
The US index, S&P 500 ended 2021 up 27%. Its best three year stretch since 1999. The Dow was up 19% on the year, while the Nasdaq gained 21%. Over the last three years, the S&P 500 is up 90%.
The JSE All Share index returned 24% for the year (29% including dividends), with the Top 40 shares on the JSE growing 19% (total re... ››› more
Last week's GDP data showed that South Africa's economy shrunk in the third quarter of 2021.
This follows four quarters of economic growth from pandemic lows.
It also means that another quarter of economic contraction would put the country back in recession.
So, are we heading back into recession, or will the economy turn upwards from here?
Let's have a look at what the numbers say… ... ››› more
In July this year, I pinpointed 3 green lights for its rally to 4,600. And have you seen recently it's been trading at around 4,681
The price has shot right through the price target and then some.
At first, I was going to just bank my profits and run…
However, I've just been alerted another 3 MAJOR buying signals.
And now my SP500 price target just got bigger, better and even mor... ››› more
China's second largest real estate developer is going bust.
The company is $300 billion in debt. And it is struggling to pay interest when payments are becoming due.
It's easy to think that an ailing real estate developer in China is an isolated case and it won't affect you…
But the thing is, China's real estate market is worth $55 trillion. It is bigger than the US stock market, and... ››› more
Q. “I refer back to Monday's article. You mentioned that the main reason for the rand's rally was based on global reasons rather than local. Don't you think South African interest rate changes could have an effect on the rands strength too?”
A. As there is no clear-cut answer, I can only speak from my economic background and experience.
Generally, when interest rates ris... ››› more
On 20 May 2021 the SA Reserve Bank had its bimonthly monetary policy meeting.
The bank kept interest rates flat - at what is basically an all-time low for South Africans…
In its announcement the bank governor, Lestja Kganyago said “Economic and financial conditions are expected to remain volatile for the foreseeable future. In this uncertain environment, policy decisions will continue ... ››› more
Q. “I read that the S&P 500 and Dow Jones digital assets indices have also gone live and are available to investors. Will this also help boost Bitcoin's price as you predicted in Monday's article?”
A. Most definitely.
Whenever major stock exchanges accept, add on or, regulate crypto-currencies, the more attractive it is for investors to buy crypto-currencies like Bitcoin.
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Property stocks on the JSE have had an atrocious year.
Right now, they're still around 46% lower than they were one year ago.
We all know that many landlords, especially in the retail space, had empty shops and tenants that couldn't pay during the hard lockdown…
But the property index has started a turnaround. Since 1 November 2020 the SA Listed Property Index (SAPY) is up 15.81%.
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Right now everyone's talking about the US presidential elections. While the US president doesn't directly affect us - what happens to the US economy affects the entire world. So, there's definitely some merit in keeping an eye on the Americans…
Similarly - in 2021 we'll have local government elections again in SA as well.
So how do elections affect the stock market? And is there anything... ››› 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
While many investors have been focusing on gold hitting new highs, the crypto market has boomed behind the scenes…
For instance, the entire crypto market has added $100billion in the last month….
Bitcoin recently shot past $11,000 for the first time this year…
And Ethereum has soared over 54% in the past 2 weeks taking its total gain for 2020, to over 181%.
So, what's going o... ››› more
2020 has been one hell of a year. Coronavirus has ravaged most markets and yet certain stock markets have hit record highs.
Whatever the reason for the run up, the obvious divergence of share prices from the underlying reality seems to be all too apparent to professional investors.
So, is it time for you to hit the big red button? Is now the time to sell everything?
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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
Q. “Hi Timon, I've recently joined Red Hot Storm Trader after following you for the last couple of years. I now feel almost ready to take action with my trading. Do you have a set bunch of questions you answer before you take a trade?”
A. Before I take a trade, I ask and answer the same seven questions each time…
1. Has a trade lined up according to my strategy?
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Q. “On Tuesday I bought 100 Remgro shares and when I woke up on Wednesday to check the markets, I was holding 69 RMH (Rand Merchant Bank Holding) shares instead. Please can you explain what happened?”
A. Believe it or not, the exact same thing happened to me.
Remgro went ahead with the unbundling process in Rand Merchant Bank Holdings to its shareholders.
Unbundlin... ››› more
A bear market refers to a widespread decline in asset prices of at least 20%.
We've seen stock markets fall 20% and more in recent months. The oil price fell through the floor, and unemployment is soaring.
This is not a fun time to be in, and you might be confused, panicked or just blown away.
The good news is, this is only a phase - and it will also pass. Things will turn around and l... ››› more
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