Some big-name companies announced stock splits and today is an important day for investors.
Apple (APPL) shares split four for one on Friday close. This means it will start trading today at 25% of its closing price of $499.23 on Friday. This is the fifth time its split in 33 years. If Apple never did these share splits, 1 share would be changing hands at almost $29,000, from an IPO price of $2... ››› more
Investing in the stock market today with 100% downside protection sounds too good to be true.
That's because for every positive headline you read there are 4 negative ones signaling a strong pull back in the weeks and months ahead.
And the recovery, post coronavirus lockdown is expected to be slow.
But investors in the latest “risk-free” structured product need not worry what happe... ››› more
In October 2019 the US Federal Reserve Bank announced that instead of shrinking its balance sheet by $50 billion a month it is now PRINTING $60 billion worth of money extra per month!
That's right… The bank was in the process of unwinding the nearly $4 trillion worth of money it printed to get the US economy going following the 2008 financial crisis.
Now it is printing more money each mo... ››› more
Last week, the US Federal Reserve finally cut interest rates again. The rationale behind this move is to help sustain US growth.
Now the quarter-point cut marks the third rate cut this year. And this can be good news for stock investors. In fact, following the latest announcement, US stock markets hit new highs.
But even better….
If history is anything to go by, we could see US stock... ››› more
The rand is continuing its journey weaker against the dollar.
Over the past few trading days, the local currency is feeling the effects of the dollar picking up momentum.
Yesterday, strong housing data out of the US provided the dollar with further impetus.
The rand is hovering close to R12/$ again.
Let's take a closer look at what's going on…
The rand continues to weaken
F... ››› more
Last month I wrote an article explaining that gold will make its rebound, slowly but surely.
Gold suffered significant losses during the past few years - dropping 37% from its high of $1,900 in 2011 all the way down below the $1,200 in 2014.
Following from Bill Bonner's comment that gold looks to have bottomed out, I agreed that gold was about to make a comeback. And, I said "if there's eve... ››› more
Last night, the rand managed to strengthen back under R12.00/$. This came following the release of the Federal Reserve's policy statement.
Over the past few months, speculation has been growing as to when the US central bank will start hiking interest rates. This has seen investors turning to the dollar, causing it to strengthen strongly.
But this morning, the rand has given up some of last ... ››› more
Lately, the rand has been on a roller coaster ride. Last week, the local currency weakened to touch six-year lows.
As the markets get quieter as many traders take the festive period off, the rand is more vulnerable to weakness.
One positive on the rand's side is after the rouble's plunge last week, the Russian currency is on a steadier footings. This has helped emerging market currencies.
... ››› more
The rand has hit three-week highs against the dollar.
The local currency benefitted from a fall in the greenback following the release of the US Federal Reserve's latest open market committee meeting minutes.
Let's take a closer look at what's going on…
The dollar dips, spurring the rand stronger
The last few weeks have seen the rand struggling as the dollar went from strength to ... ››› more
Yesterday, the US Federal Reserve revealed the outcome of its latest monetary policy committee meeting.
As expected, the central bank kept interest rates unchanged. And it confirmed that it will end its stimulus programme in October.
But, the Fed did hint that when it starts to hike interest rates, they may rise faster and higher than initially forecast.
Let's take a closer look…
... ››› more
Over the last few days we've seen some bad news coming out from around the world:
• Economic contraction in Japan
• A shock fall in Chinese loans
• A lacklustre reading on US retail sales
• And disappointing US jobs numbers
Considering all this, it's not surprising we've seen a sell-off in global markets.
But what's surprising is that this period of bad debt could actually sig... ››› more
There's nothing I like better at the start of the week than to look back at what happened the week before and ahead to what I expect to happen in the one ahead. It makes me a better trader and investor because I then have an idea of how major news events are affecting the local and international stock market. Here's the lowdown of how last week panned out and what you can expect from the stock mar... ››› more
The local currency has been under immense pressure this week on the back of poor sentiment weighing on emerging market currencies. There are also factors closer to home playing a part in the rand's poor performance. Yesterday, reports reveal that a massive fuel hike looks likely at the start of March. And a recent survey suggests that the rand's lack lustre performance in affecting confidence in t... ››› more
Confusion reigns on the gold battlefield.
The gold bulls are calling a bottom in the metal price. John Paulson, hedge fund billionaire and the holder of the biggest share of the world's largest gold ETF is holding onto his gold for a recovery in the metal.
But at the same time, the gold bears are saying the fall isn't over yet. Banking giant, Goldman Sachs and Barclays have gone on record sa... ››› more
When there are no clear trends in the markets, like at the moment, it can be hard to know what to do next. The most important thing is don't panic. You need to wait for the opportunities to arise. So what should your trading approach be at time like these? And why are the markets behaving like this? Read on to find out what you should do…
The most important thing is to step away from your trad... ››› more
For a long time now, I've been telling you about the US Federal Reserve Bank's (the Fed's) unprecedented stimulus programme. They call this programme quantitative easing (QE). And the simplest way to describe this stimulus programme is to say that the Fed has been trying to boost the US economy by pumping it up with $85 billion every month.
And with the US employment situation gradually improvi... ››› more
Last night came the announcement world markets have been waiting for. After a two day meeting, the US Federal Reserve (Fed) said that it would start to taper its $85 billion-a-month stimulus programme. The Fed's plan is to step down the programme by $10 billion. Let's take a closer look at what the Fed has in store…
The Fed says that it plans to “trim” its stimulus programme, reports Fin24... ››› more
The woes continue for the rand. The local currency is feeling the strain as investors across the globe dump risky assets. With data from the US suggesting that its economy is looking up, investors are betting that the US Federal Reserve will start tapering its massive stimulus programme soon. And the rand is feeling the strain. Let's take a closer look at what's going on with the rand…
The ran... ››› more
As we head towards the end of the year, we're seeing more and more positive data come out of the US.
Now as a trader, you might think this is good for your share holdings.
But the truth is, the more good news that comes out, the more likely it is the markets will head South.
Don’t worry. You’re not the only one.
You see, right now we’re entering a very unusual trading... ››› more
Yesterday, for the first time ever the Dow Jones, America's largest market index, closed above 16,000 - That's a 146% gain since the lows of the financial crash.
At the same time, oil rallied to above $110 dollars per barrel.
And the US Fed is talking of tapering monetary stimulus.
But why should you care as a South African investor?
Well, all these factors come together to create the ... ››› more
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