| Good morning Voornaam, Happy Fake Friday! Tomorrow is a public holiday, which means your week is nearly done. I hope you have something excellent planned with loved ones - or even a self-care day for yourself, which is a rare gift.
On the topic of gifts, I'm currently up around 6% on the Meta dip that I bought earlier in the week. That's just one example of the dip that I bought. Yes, pretty much everything did bounce back, but the point is that I want to own Meta long-term, so why not get it at a better price? I was ready for that opportunity because I know which offshore stocks I like and more or less at what price I want to own them. To explain not just the wobbly in the markets earlier this week, but also the importance of being prepared for it, we covered these topics in Magic Markets this week. I highly recommend listening to this brand new episode.
Of course, traders also had a busy week. Heightened volatility is a recipe for even more excitement when you're actively trading the market rather than just looking to add to long-term positions at a better price. IG Markets South Africa has put together an excellent piece on the IG Academy about trading plans and risk management. There's also a quiz at the end, so you can test your understanding after reading it. Be sure to check it out here and learn about this element of the markets.
In local company news, Glencore has taken a bold stance on its "dirty" assets and it's an approach that I fully agree with. It's good to see some practicality making its way into ESG discussions. I cover that in detail in Ghost Bites, along with the news of MTN slipping into a loss-making position. To cheer you up, Quilter released strong numbers. There's also a financial update from the JSE (the listed company, not the exchange) and some shuffling of chairs at Discovery. Get all the details here>>>
If you're looking for an excellent learning opportunity today about the local market and how things are looking for a GNU-inspired trade, the recent Ghost Stories podcast with Nico Katzke is an excellent investment of your time. He also ran us through how a carry trade works, which was highly relevant to what happened in the markets earlier this week in Japan. Invest 35 minutes of your time in this great podcast>>>
As there's no Ghost Mail tomorrow, DealMakers is a day early this week. You can enjoy their summaries of local M&A and local corporate finance, as well as an interesting technical legal piece around contracts and pre-signed signature pages.
Have a great long weekend! |
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| FEATURED: The Trader's Handbook Ep 3 |
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| IG Markets Episode 3: For a review of the trades in my demo account and a discussion on how to choose the right brokerage, I was joined as usual by Shaun Murison of IG Markets South Africa. Learn about trading at this link>>> |
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| | | Ghost Wrap: With thanks to Forvis Mazars the latest on MTN's African subsidiaries, ArcelorMittal and Curro, all in just a few minutes in the Ghost Wrap podcast. |
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| FEATURED: How to prepare for a crash |
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| | | Magic Markets: When the markets deliver a gift, you need to be in a position to receive it properly. Building a watchlist and being ready to execute is key to success. In this episode, we discuss this concept and the reasons for the recent sell-off. Enjoy it here>>> |
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| FEATURED: ChatGPT and first mover disadvantage |
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| Dominique Olivier: Going first isn't always the best move in business. The benefit of hindsight is wonderful, even if we are talking about someone else's hindsight. ChatGPT is just the latest example of what looks increasingly like first mover disadvantage. Learn more here>>> |
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| Ghost Bites: Get the latest on Discovery, Glencore, JSE, MTN and Quilter, along with various Little Bites in Ghost Bites here>>> |
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| | | Unlock the Stock: In a session with a different format to the norm, Keillen Ndlovu joined us to present his institutional-quality research on the REIT sector, followed by a vibrant Q&A. Brought to you by the SA REIT Association, you can watch the recording here>>> |
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| Nico Katzke of Satrix: The GNU has driven significant optimism around the South African market. To help us understand where this is playing out and how the carry trade protects the rand, Nico Katzke joined me on Ghost Stories. Find it here>>> |
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| Magic Markets: Is the automotive sector a good investment? Using examples like Ford, GM, Toyota and BMW, we set out to answer that question in the latest episode of Magic Markets. Find it here>>> |
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| Investec No Ordinary Wednesday podcast: The market may be unpredictable, but your investment strategy doesn’t have to be. Investec Investment Management experts share their insights on what approaches are winning, common mistakes investors make, and why staying the course is important. Enjoy it here>>> |
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| International Business Snippet: |
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| Disney finally has a good news story to tell, beating both revenue and earnings expectations. To be fair, Disney has been so bad in recent times that at some point the expectations are so low that they have to beat them.
Importantly, the streaming business has turned a profit for the first time. They only expected that to happen next quarter, so that's the real highlight of this story. I would also be careful here, as Disney has been juggling its reporting lines. Corporates are very good at doing what is needed to tell a better story to the market.
Inflation is biting in the theme parks, with poor operating income trends particularly in the US business. Consumers just cannot afford this stuff at the moment and the costs of running the parks are immense.
We are covering Meta in Magic Markets Premium this week. For subscribers to Magic Markets Premium, the investment of R99/month is the best investment they can make. |
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| IG Morning Call: daily macroeconomic update |
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| Major US equity benchmarks the Dow, Nasdaq and S&P500 all ended yesterday’s trading session lower after having had a positive start to the day.
Technology counters led the decline, as heavyweight counter NVIDIA continued to fall after rumours that AI chip production may be delayed by as much as three months.
European and Asian indices are however suggesting modest gains this morning and we are expecting a slightly firmer start for the JSE All-Share Index.
The dollar traded well off session lows yesterday and is relatively flat this morning.
The rand has managed to etch out some gains against the greenback to trade at around R18.33/$.
Gold is up marginally in early trade, while oil has gained significantly after a larger than expected drop in US inventory levels was reported.
Local manufacturing data out at lunch time and US employment data out in the early afternoon will be amongst today’s key news releases for traders to look out for.
Key Indicators: USD/ZAR R18.33/$ | US 10yr 3.91% | Gold $2,393/oz | Platinum $923/oz | Brent Crude $78.20
The macroeconomic update is based on IG's morning call update |
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