| Good morning Voornaam, As the old story goes, markets don't go up in a straight line. Sometimes, they don't go up at all. Other times, they dish out a nasty day for investors, especially in single stocks.
It always comes down to the same thing: a negative surprise. HEPS growth below expectations, a poor outlook for earnings or perhaps a drop in the dividend payout ratio are all common causes for a share price knock.
On Friday, Gold Fields took a 7.8% bath and Grindrod was down 4.1%. That's an unpleasant day if you hold both names. It's amazing that one company increased the payout ratio and the other reduced it, yet both share prices were in the red. Clearly, the market is smarter than just being seduced by dividends.
Along with these updates, I covered African Rainbow Minerals, Alphamin and a selection of Little Bites. Get it all in Ghost Bites this morning.
The beauty of market volatility for traders is that it gives them something to do. It's hard to make money when a share price doesn't move. To continue developing your knowledge of the opportunities available to traders on the market, IG Markets South Africa has shared a useful piece on position trading with us. It's short and sweet - though of course you could be long and sweet as well, if you think the stock is going up. Learn about position trading here>>>
For something completely different on this cold and rainy Monday (down in the Cape at least), Dominique Olivier has used two recent examples of viral social media trends to show how brands simply cannot ignore the universe of content creators. I'm fairly sure that it was Seth Godin who said that there's never been a better time to be a creative person in the world. Brands are now jumping onto trends rather than creating them. Find out more in this article>>>
Have a great start to your week! |
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| FEATURED: The Trader's Handbook Ep 4 |
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| | | IG Markets Episode 4: The markets are as varied as they are beautiful, so it's no surprise that there are various different trading strategies available. Get an overview of the approaches taken by traders in the latest episode at this link>>> |
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| FEATURED: Portfolio Construction with AnBro |
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| Magic Markets: Picking stocks is great, but what about the portfolio that they belong in? How do you get the position sizing right, or create a coherent strategy? We explore this topic in the latest Magic Markets podcast and transcript. Find it here>>> |
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| FEATURED: Unlocking the true value of TFSAs for South Africans |
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| | | Satrix: In an article that I could not agree with more, Duma Mxenge talks about the importance of tax-free savings accounts and why they could be rebranded to make it clearer that this should be the cornerstone of an investment journey. Get his views in this excellent article>>> |
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| FEATURED: The rise of self-directed investing |
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| Investec Podcast: As part of the Investec No Ordinary Wednesday series, you can enjoy Jeremy Maggs in conversation with Tinus Rautenbach, head of Investec's online platform Clarity, as they discuss the rise of self-directed investing. Find it here>>> |
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| Ghost Bites: The latest on African Rainbow Minerals, Alphamin, Gold Fields and Grindrod, along with various Little Bites in Ghost Bites here>>> |
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| | | Ghost Wrap: With thanks to Forvis Mazars, this podcast brings you the latest on Absa vs. Standard Bank, MTN and NEPI Rockcastle, all in just a few minutes in the Ghost Wrap podcast. |
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| Unlock the Stock: In the latest session, Tharisa Plc returned to the platform for an update on the company performance and strategy going forward in PGMs and chrome. 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: What is the right way to prepare for a major sell-down in the market, or even a crash? It's all about research and watchlists, as well as having money that is ready to go into those dips. We discuss these concepts in this podcast>>> |
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| International Business Snippet: |
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| Earlier this year, I finally pulled the trigger on selling my beloved classic Alfa. There were a number of reasons, including a worry that the pool of buyers for older vehicles is shrinking by the day. Finance 101: when demand is dropping and supply is stagnant, prices aren't going up.
The challenge is that classic cars, along with many alternative assets like wine, are a decision of the heart first and the head second. When you work out the returns net of all costs of ownership, you're lucky to beat inflation - and that's if you bought really well. Of course, there aren't many hobbies that preserve wealth, so it's still lovely. I just think that the prices for a lot of the older cars (other than the super rare stuff) have peaked.
This piece on CNBC caught my eye this morning and it seems to confirm my suspicions. You don't need to love cars to learn something from the dynamics in this market.
For weekly research on global stocks and key takeouts for investors and traders alike, you'll love Magic Markets Premium. For our subscribers, the investment of R99/month pays for itself. |
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| IG Morning Call: daily macroeconomic update |
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| The dollar is trading at its softest levels since December last year, following dovish comments from Fed Chair Jerome Powell on Friday at the Jackson Hole Symposium. The rand in turn continues to trade around its best levels of the year against the greenback.
US and European index futures are marginally lower, although close to Friday’s highs. Asian benchmarks are trading softer on the day as concerns around China’s property sector find renewed focus. The JSE All-Share index is expected to open slightly off its all-time highs realised just last week.
Oil prices have extended their rebound from oversold territory after Hezbollah fired rockets and drones into Israel.
Gold is tracking sideways this morning.
There is no high impact data scheduled for today.
Key Indicators: USD/ZAR R17.74/$ | US 10yr 3.78% | Gold $2,507/oz | Platinum $962/oz | Brent Crude $78.20
The macroeconomic update is based on IG's morning call update |
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