Q. I read one of Timon's articles about his prediction that gold is about to rally again. I would like to ask if the drop in value of the US dollar and bonds will also help with gold's run-up? Hennie…”
In March, we saw both the 10-year US Treasury yields drop, along with the US dollar falling over 0.2%.
Now economically speaking, when the US dollar... ››› more
The amount of available dollars is on the rise...
In simple terms, as dollars become more plentiful, their value drops. Dollars are less scarce, so individuals and businesses are less worried about having access to them when needed.
The Federal Reserve has been a huge driver of this. It's doing whatever it can to support economic growth.
Currently, the Fed's purchasing roughly $120 bil... ››› more
Last week, was a wild ride.
We had a global sell-off in stocks and currencies due to:
• The nail-biting election between Trump & Biden
• Major dollar weakness with the lack of confidence in America
• A resurgence in COVID-19 cases to new highs in Europe and America
And while all hell was breaking loose, the South African rand was on fire.
In fact, last week it broke below ... ››› more
The Rand followed the technical pattern in textbook fashion last week banking 3.5% ungeared. That's 35% using futures and as much as 350% on margin if you were trading CFDs.
Right now the Rand is at a crucial technical level as support on the USD/ZAR builds at R16.40.
Look at the chart below to see where the Rand could be headed next…
... ››› more
March will be known as the worst month of all-time for the South African rand.
With the ongoing lockdown, the increasing rate of COVID-19 cases, the crumbling economy, and the downgrading from Moody's - It's just been bad news after bad news for SA.
And what happened last week?
Well we saw the South African rand hit record lows passing through the R19.00 mark against the US dollar.
... ››› more
2020 is set to be a nervous year for South African investors.
At home we have this triple whammy to look forward to… load shedding, a potential ratings downgrade and low growth.
Internationally we got Brexit, the US election and the ongoing trade war. And maybe even an actual war!
All this when many global indices are at record high and way overdue a reset.
In such an environment... ››› more
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
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
Dear MoneyMorning reader,
US Stock up 3%, Emerging Markets down 4,5%
US Stocks recovered from sharply lower levels after a reconciliatory speech from President elect Donald Trump which eased market fears; Energy and Industrials were the leaders based on his plans for infrastructural development.
Emerging Markets have been left out in the cold as investors evaluate the impact of a Trump p... ››› more
Over the past year, the Australian dollar shed 25% against the US dollar.
But just lately, the Australian dollar has started to recover some of those losses. It's started an uptrend against the greenback.
So if it worth buying?
Let's take a closer look…
The case for buying the Australian dollar
The ideal set up for a long trading opportunity is:
The asset it cheap;
... ››› more
Last week, as investors continue to dump emerging market assets in anticipation of US interest rate hikes, the rand hit a 14 year low of R12.77 to the dollar.
The rand hasn't been this low since December 2001.
Since the beginning of 2015 alone, the rand fell almost 10% against the dollar.
My point is, our local currency is under pressure and this has a major impact on you.
You see, e... ››› more
If you've been reading the news for the past month or so, you'd have seen the significant drop in the gold price.
If you'd invested in gold at the beginning of 2015, you'd be 8% down now. In fact, gold has dropped almost 10% is the past month alone.
Not to mention, the gold companies on the JSE have taken a huge knock due to the decreased gold prices. So, many gold-loving investors are curr... ››› more
When it comes to strong currencies, the US dollar is certainly leader of the pack at the moment.
Recently the US dollar's strengthened against the pound, the yen, the Australian dollar, the euro, the New Zealand dollar and the Canadian dollar.
And that doesn't include emerging market currencies, which the dollar has made even bigger gains against.
So are there any currencies worth lookin... ››› more
So, you've got your technical analysis in order. You've back tested your strategy and it's highly profitable! You don't see yourself as a new trader anymore… You're ready to apply your strategy for maximum gains and start your journey as a successful trader!
Then, you start trading and after a few successful trades, your strategy falls to pieces! It's just not working anymore and you start lo... ››› more
There's no denying the dollar's had a terrific rally since June. It's hammered the rand along with a whole host of other currencies.
Yet there's one currency that it hasn't beaten. There's one currency that's now stronger than the dollar.
So what currency is this? And what should you do about it?
Let's take a closer look…
China’s currency is gaining traction
The International... ››› more
Last week Gill Marcus announced that the Reserve Bank will leave interest rates unchanged, but warned that further rate increases would follow soon.
The expectation of increased rates has seen the rand strengthen to R10.60 against the US dollar. But this strength won't last.
And that's why now is the perfect time for you to get into resource shares and profit.
Let me explain…
... ››› more
Last week Janet Yellen, the US Federal Reserve Bank (Fed) Chairperson, announced that the US could stop its economic stimulus program as early as the end of this year. And interest rates could start rising in 2015.
This move signaled the end of dollar weakness.
And it could make you a lot of money as a trader if you know where to look. In fact, I've got two great ways you can profit from thi... ››› more
Last week we saw an unusual development as the Chinese Renminbi recorded its biggest monthly drop since 2007.
But when you take a closer look at the situation, the Chinese government doesn't seem concerned about its weakening currency.
In fact, it looks like it's actually trying to weaken it. But why would China do this. And what does it mean for you as a Forex trader?
So what’s ... ››› more
With countless currency pairs available in the Forex market, only a handful of them that are suitable to day-trade with.
The rest are what I call the "small-frys" of the Forex ocean.
And if you don't know what you're dealing with, these little guys could cost you big time!
So what are they?
Ignore these minor currency pairs from your short-term trading
Minor currency pairs are the smalle... ››› more
If you ever want to make a geek tear out their hair, tell them Bitcoin is a fiat currency.
This is one of the biggest and most annoying misconceptions about Bitcoin.
And it's not just lay people who are making this mistake.
Everyone who likes to think they know a thing or two about Bitcoin seems to think Bitcoin is ‘not real money'.
Which is not only WRONG, but is just plain bizarre.
W... ››› more
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