S&P500 Earnings
Whether we like it or not, the progress of the JSE is determined to a considerable extent by what happens on Wall Street. If the New York Stock Exchange (NYSE) is in a bear trend then the high probability is that the JSE will also be heading south. So, private investors are always well-advised to keep their eye on American markets and to take a view on where they might be going. The best way to follow the NYSE is through the
Post Script - Mining
On 12 October 2018, we published an article on mining in South Africa. One of our clients very kindly corrected some of our mistakes in that article and added more value. He has agreed that we publish his contribution. Historically the economies of countries first depended on easily exploited resources on land and sea and, as technology developed on, mined minerals. South
Gambling Vs. Investing
GAMBLING
Gambling is associated with casinos and is epitomised on the roulette table. In roulette members of the public essentially bet against each other with the casino taking a small percentage for the cost of setting up and running the table. There are 37 numbers on a roulette table – three rows of twelve numbers plus the zero. If you place a R10 bet on every number you will have to outlay R370 – and then you
Speculating on Aveng
Aveng was once the largest construction company in South Africa and in August 2008 it traded for just under R70 per share. Since then it has been hammered by a host of problems beginning with the 2008 sub-prime crisis, to the dearth of construction work following the 2010 World Cup, the heavy fines imposed on the construction shares by the Competition Commission for collusion and several
Naspers Value
Naspers is something of an anomaly on the JSE because it accounts for roughly 20% of the JSE Top 40 index. This is because of an inspired decision by Koos Bekker to acquire a 33% stake for $32m in what was then a small internet/social media company called “Tencent” back in 2001. This investment has performed beyond even Bekker’s wildest expectations, exploiting the Chinese penchant for social media and gaming. On the 22nd
Mining
It would be fair to say that the South African economy has been substantially built on mining – first diamonds, then gold and then platinum and a host of base metals and minerals. South Africa is home to two geological features which have endowed it with enormous mineral wealth. They are the Witwatersrand Basin and the Bushveld Igneous Complex. The Witwatersrand basin is an ancient sea bed which is buried under layers
Exploiting October Fear
Ever since the collapse of Wall Street in October 1929, October month has been a time of fear and nervousness for investors. That fear was compounded by the single day 23% drop in the S&P500 index in October 1987. So every October, investors, especially in America, worry about a possible melt-down in the share market. And, of course, some of them decide to sell out just in case there is such a crash. Those sell-outs tend