The Rand has strengthened against the majors over the past few weeks, but it has lost momentum and can't break below a key support level.
We have our third quarter GDP numbers out at 11h30.
With trade war uncertainty that hasn't abated and the VIX (aka the fear gauge) climbing from below 12 to above 14, we should see the Rand weaken against the majors over the next week or two.
When the ... ››› 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
Vodacom released interim results yesterday, and it isn't enough to see it push through the critical resistance level above R136.50.
Headline earnings per share came in at R4.60 (half year), which is below the full year 2020 consensus expectation of R9.61. Vodacom will have to do very well in the remaining period to achieve consensus and not disappoint investors.
SA reported mobile service ... ››› more
Last week we initiated a long USD/ZAR trade as we believed the market was pricing in too many positives.
After the sobering news from the medium-term budget speech, it promptly lost over 60 cents.
Traders who used futures would have made over 30% as our initial profit target was reached in just over a day.
The Rand is strengthening on the back of Moody's just reducing the outlook from s... ››› more
The Rand has made a strong recovery against the major currency pairs over the past month.
And faces several headwinds this week with the Mid-Term Budget Speech due tomorrow.
There's also the Moody's decision and a slew of important data points from the US, Europe and the UK.
These events have the potential to see the Rand lose 50c or more in the coming weeks against the USD.
Look at t... ››› more
Did you know since the start of the year, gold has risen to just about 16%.
It's been a great year for not only investors, but for us traders as well.
In fact, this year alone with Red Hot Storm Trader, we've managed to bank three out of four winners on Anglo Gold with the gold rise including…
• January 2019: + 47.77%
• February 2019: + 41.10%
• July 2019: + 34.97%
• Sept... ››› more
Many retail investors are bombarded with ways to invest through exchange traded funds (ETF), most of which passively track an index.
The ETF platforms highlight how cheap they are, but in actual fact they aren't cheaper. If you have more than R80,000 in the account, its expensive. The ETF platforms charge between 0.35% and 0.65% ex VAT just for annual admin fees. That's on top of the other fees... ››› 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
Week after week, market commentators highlight how investors are not making positive returns in USD. The US dollar is king now, with it paying a positive yield and investors who have missed the gold rally are hording it. This has caused liquidity to be squeezed.
It's increasingly likely that President Trump will use the 1934 Gold Reserve Act to sell US Dollars and buy foreign currency as a way... ››› more
Q. “My question is really basic and so please bear with me… I have been wanting to invest in shares for the last three years and I would very much like to receive dividends as a passive income. Could you please explain what dividends are exactly and why a company would pay dividends to shareholders?”
A. I am always happy to answer these questions, because we all have to start somewhere w... ››› more
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
Q. "Hi Timon, I'm looking to expand the number of international shares to trade. I have seen through Real Wealth and Trading Tips that there are a number of growing industries in the world. Three that come to mind include: Artificial Intelligence, Electric Cars and Renewable Energy... Could you name a few of the large names that make up these industries so that I can add these shares to my watch l... ››› more
Globally, investor sentiment is at a low, investors on the JSE are no different. They are faced with the same issues and risks as global investors but with the added risks locally.
It's not easy being optimistic enough to deploy additional capital but you can stack the odds in your favour by slowly deploying capital into the many JSE “bargains” that periods of sustained pessimism bring. Ba... ››› more
The hunt for yield and aversion to risk is causing something we have never seen before.
Interest rates and bond yields are falling globally and have turned negative. You can get a home loan in Denmark at an interest rate of -0.50% per year fixed for 10 years. While we are still far away from that with real rates in positive territory, investors must be tactical in deploying capital.
... ››› more
The most lucrative opportunities are found in times of maximum pessimism. Investors just need to filter through the noise for the right shares to invest in, that have potential tail winds in the months and years ahead.
Small caps have lost favour with investors. Many are trading at all-time lows while growing profits steadily in these tough economic times.
One such share is a little-known ... ››› more
If you haven't already read about it, Naspers (NPN) plans to list its international internet assets, in a company called Prosus, on the Euronext Amsterdam exchange and the JSE on September 11.
So, you need to own Naspers on 12 September (Ex-div date) to qualify for Prosus shares or additional Naspers shares.
For a lot of investors, the biggest consideration affecting their d... ››› more
In the first three months of the year, we saw a major rally on a number of resource stocks listed on the JSE.
Take a look at the chart of the JSE-Resources Top 20 Index to see what I mean…
During the 20% resource rally, we took full advantage and my Red Hot Storm Trader members managed to bank a total gain of 245.65% including a:
• 51.95% gain on Anglo American Plat... ››› more
Q. "I heard on the news last week, that soon we will be able to trade Bitcoin futures and that it will be a major game changer for traders all around the globe. Can you share a few details about this and when the futures will be available to trade?"
A company called Bakkt which is a subsidiary of the New York Stock Exchange - parent company - Intercontinental Exchange (ICE) has given the go ah... ››› more
Following on from last week's article where I quoted Sir John Templeton as saying “tell me where there is the most pessimism and I will tell you where to invest”. That describes global equity markets now and more accurately the South African market. Most investors are bearish and pessimism is high. But that doesn't mean you should be buying every stock making 52-week lows or in bargain territo... ››› more
In June 2019 I told readers that gold is headed higher… Back then I had a longer term target of $1,900 in mind.
Today, the gold price is already $100 higher than it was back then.
The rand is also weaker - leading to a rand gold price of more than R750,000/kg. That is R110,000 per kilo more than it was in June...
Gold has suddenly become so bullish that Goldman Sachs just upgraded it... ››› more
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