Many investors rush for the exit at the same time, causing a whip-saw effect in asset prices.
The Rand is particularly vulnerable to this as one of the major currencies.
Emerging market (EM) investors can use it as a proxy for less liquid EM currencies, and use it to hedge as it has the benefit of straddling trading hours in parts of Asia and America.
There are two ways for you to get ... ››› more
Since 2018 I've been telling investors that this company is in trouble.
When I wrote about it in 2019, calling it Steinhoff 2.0, the share price was 862c. This week it was 59% lower at 352c.
But instead of fixing its problems this company has kicked up its ‘dodgy' dealings by a BIG notch…
Let's have a look.
Three Penny Super... ››› more
Q. "I've seen that REITs have become widely spoken about in the news lately, since the Federal Reserve decided to cut the interest rates by 25 basis points to 2%. This has sparked my interest to look into investing in REITs. Timon could you explain briefly what a REIT is, how they work and why the drop in interest rates have attracted investors into buying them?”
A. REITs (pronounced R... ››› more
In July 2018 I told investors that Trustco Holdings, and the accounting tricks the company were up to, was flashing red lights on my radar…
As I explained to investors back then, Trustco was being investigated for insider trading, the company's CEO has a dubious management and remuneration agreement with it, and there were deals being done with the CEO that weren't fair to investors.
Wha... ››› more
Let me ask you a serious question…
How many of you believe you have enough money to last your retirement?
Well when you consider that over 50% of South Africans aren't confident they will be able to draw an income in retirement, I'm going to assume not many of you.
You see, a standard retirement annuity is simply not enough to generate the income you need, for the retirement you want... ››› more
Last year was a rough year for markets. The All Share Index only managed to eke out a measly 5.22%, almost a third of its long-term average return. It was also a year in which we witnessed the spectacular fall from grace of two the JSE's former market “darlings”.
MTN which delivered 136.23% between 2010 and 2015, ended the year down -36%, after getting smashed on the news of its Nigerian ... ››› more
It's simple, lending money to government is a guaranteed income bearing investment.
Most investors fail to recognise the value in this form of investing. Yet, it's hugely important if you want to bank more than just capital profits on your investments.
If you lend money to someone, you want to know that you're lending it to a person who can pay it back, along with the interest you charge.
... ››› more
In the last three weeks, one question constantly comes up in conversation with my friends, “What do you prefer, unit trusts or ETFs (Exchange Traded Funds)?”
My quick answer is always ETFs. But then I'm bombarded with follow up questions asking, “What's the difference and why do you like them so much?”
So, today, I want to put these questions to rest and explain once and for all, why... ››› more
I thought you may be interested in reading my answers to some of the recent trading questions I received on from traders on our investing club, www.investorsclub.co.za
If you have a question of your own, simply sign up (it's FREE) and ask away. Either I or one of the other FSPInvest experts will answer your trading and investing questions within 72 hours.
Q: How much do I need to make an ... ››› more
To find out if trusts can help you protect your family's financial situation after you're gone, Aiden Sookdin spoke to one of the foremost trust experts in South Africa, Albert Vorster, Senior Fiduciary Specialist at Momentum Trust Limited. Here's what you need to know...
Albert agrees that trusts are still relevant for effective estate planning, asset protection and generational continu... ››› more
No matter what you financial situation is, there's nothing more devastating than seeing the Sheriff auctioning off your business, home and other assets because you lost your job or a business venture you put your heart, soul and life-savings into went bad.
That's why it's vitally important to make sure your assets are protected from creditors in the event of any unforeseen eventuality like inso... ››› more
Unit trusts are solid investments. They deliver safe, long-term gains and take the worry of investing your money off your shoulders.
But what makes a good unit trust?
Let's take a closer look at what you should be looking for when deciding on a unit trust investment.
It all starts with what you want...
Before you invest in anything, you need to know what you expect to achieve from ... ››› more
The best legal way to make sure you don't lose your money is to distance yourself from it.
Let me explain...
Putting your assets into a trust means that you don't personally own them anymore. The assets are held in trust for the benefit of the beneficiaries. The trustees simply manage these assets. When everyone involved signs this contract the Mater of the High Court registers the trust. ... ››› more
I'm sure that you've heard so called experts around the braai tell you exactly what to invest in next, “My Uncle's boss's sister bought this share and today she's a millionaire.” Well, if that's where you get your investment information from then I'm seriously concerned.
You see its important to know what you're talking about when it comes to investing your hard earned money. That's why to... ››› more
You invest your hard-earned cash into a fund to help grow your retirement portfolio, but in a mere 2 days, the fund you've invested in loses 66%.
This happened to investors in the Third Circle MET Target Return Fund in December.
What's more, Asset Managers who invested in this fund also lost a fair chunk of their portfolio.
That's why today I want to share the three red... ››› more
If you want to invest in unit trusts, you'll soon find out that there are a large number out there to consider.
So where should you look to find out everything you need to know about a specific unit trust?
You need to look at its fact sheet…
What is a unit trust’s fact sheet?
All unit trusts have a fact sheet. As well as for unit trusts, you’ll also find fact sheet... ››› more
If you fancy buying gold stocks as you see a recovery coming for the sector or to gain exposure to the gold price, it can be difficult to know which ones to buy.
One way to get around this is to buy into a unit trust that invests in gold stocks for you.
So what should you look at when weighing up different gold unit trusts?
Read on to find out…
The ins and outs of gold unit tr... ››› more
If you want to invest in tracker funds, you have two options available to you. You can invest in exchange traded funds (ETFs) or you can invest in passively managed unit trusts.
So which is the best option for you?
Read on to find out more…
The differences between ETFs and unit trusts
There are a lot of similarities between ETFs and unit trusts.
Both these types... ››› more
Exchange traded funds (ETFs) are growing in popularity the world over. Since their introduction in South Africa, they have attracted a lot of investment and the number available continues to grow.
So what are the advantages of investing in them? And are they a good alternative to unit trusts?
Let's take a closer look…
The benefits of ETFs
There are a number of benefits to ... ››› more
You can use unit trusts to gain exposure to shares on the stock market, but this isn't the only option for you have with this kind of fund.
You can also invest in fixed-interest unit trusts too.
So what are fixed-interest unit trusts? And what type of fixed-interest funds are available to invest in?
Read on to find out…
The ins and outs of fixed-interest unit trusts
... ››› more
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We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found on this website.
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 website.