The Bull Trend Resumes
A week ago on the 22nd of August, we suggested in an article that the S&P would break up to a new record high above 2872. It has done that emphatically – rising to another record and breaking above the 2900 level last night to close at 2914. We also suggested in that same article that this would cause our blue chip shares to follow suit
Mental Posture
What separates an effective private investor from one who loses money continuously? The difference is what we call “mental posture”. To be a successful private investor you need to have a good mental posture. But what is mental posture? It is your emotional response to the share market in general – and to your shares in particular. What are you feeling? Because how you are feeling will
S&P Touches Record High
On the 9th of July 2018 and previously on the 6th of April 2018 we suggested in articles that the S&P had reached the bottom of its correction at 2581 and found strong support at the level. We also suggested that the strength of that support indicated that the correction
Bitcoin Continues to Unravel
In December last year we ran an article entitled “The Bitcoin Bubble” and there we suggested that the exponential nature of the Bitcoin price was clearly indicative of a bubble and we advised that if you owned them you should sell and if you didn’t you should stay away from them. We published a
The Rand Tanks
The rand has collapsed from R13.38 to the US dollar to levels as low as R15.26 – in less than two days. It has subsequently stabilised at around R14.50. South Africans will naturally think that this has been caused by something that the government has done or that President Ramaphosa has said, but in this case they would be mostly wrong. The current weakness in the rand has been caused by a sudden sharp move from risk-on
Woolies Risk and Gearing
Every investment has risk, because without risk there cannot be an inflation-beating return after tax or any real growth. From a fundamental perspective, risk is usually measured in terms of a company’s gearing – how much debt has it got relative to equity? Or in simpler language - how much money have the shareholders got in the business when compared with what outsiders like banks and creditors have in it. A highly indebted
ArcelorMittal - Buying Opportunity?
The steel industry in South Africa is a very important industry because its production supports so many downstream industries and businesses. For this reason, the government has been sympathetic to ArcelorMittal’s call for tariffs on certain steel products which have been systematically dumped on the South African economy by the Chinese. China is the largest steel manufacturer in the world and has traditionally consumed