What are the magnificent 7 stocks and should you own them?
For the past decade, tech stocks that make up the Magnificent 7 have attracted substantial chunks of investor capital by delivering high growth and, in many instances, eye-watering returns.
This group of high-performing U.S. technology and growth companies have dominated market performance and driven significant gains in the S&P 500 (VOO-NASQ) due to their leadership in artificial intelligence (AI), electric vehicles (EV), and other technologies.
What precious metals ETFs are available in South Africa
Precious metals are on a tear at the moment, with gold the standout performer, rising hitting a new all-time high above $5300/oz as investors look for shelter from global volatility and geopolitical risk. Platinum group metals (PGMs) are also benefiting from strong trends driving demand, like the transition to green energy and electric vehicles.
What JSE concentration means for portfolio risk
While index investing is generally considered a good diversification strategy because it spreads investments across different assets, industries, and regions, the specific composition of the JSE means that a passive approach may introduce greater concentration risk into portfolios.
Should I reinvest my Two-Pot Retirement Withdrawal?
In a country where the savings rate is very low and only about 6% of South Africans can afford to retire and maintain their current lifestyle, the two-pot retirement system was a major development for South Africa.
Since launched in September 2024, it’s made headlines for the amount of money withdrawn and the reasons people accessed the available funds.
Now that the initial frenzy has died down and a new withdrawal window is set to open in the new tax year in March, it’s important to consider whether it’s beneficial to use the available funds and how to get the most from any withdrawal.
Investor relations: Feeding you the investment info you need
Information is the lifeblood of every informed investment decision, which is why astute stock investors scour through quarterly and annual financial reports and other sources to get transparent and timely insights about the company and its performance and future prospects.
Without access to this data, investors would need to base their decision to buy, sell or hold a stock purely on speculation, rumours, or trends, which would significantly increase risk.
Personal finance and investing book recommendations for DIY investors
Work your way through this reading list to build a strong mental foundation and empower yourself to navigate market volatility and avoid common pitfalls. It’s the key to ultimately increasing your long-term probability of success.
How the rand-dollar exchange rate affects your trading
Investing offshore is not only a good idea to access a broader opportunity set and diversify a portfolio across different geographies, sectors, and themes, but it also offers South African DIY investors the potential opportunity to benefit from differences in the rand-US dollar (ZAR/USD) exchange rate.
According to a working paper by the IMF, the ZAR/USD exchange rate is driven far more by global forces than by local data. The biggest contributors to rand volatility are swings in global commodity prices and rising investor fear, often measured by the VIX.
Unexpected U.S. economic data also moves the rand by shifting expectations around the dollar and interest rates. At home, political uncertainty tends to amplify volatility, along with local economic surprises.
What are preferred stock ETFs?
Let’s be honest, everyone loves preferential treatment, whether it’s priority boarding for a flight, VIP treatment at your favourite band’s concert, or a complimentary upgrade when checking into a hotel room. Investors are no different, which is why preferred stocks are popular additions in many portfolios. Understanding preferred stocks Preferred stocks – also known as […]
How South Africa’s removal from the FATF Greylist impacts your portfolio
In February 2023, the Financial Action Task Force (FATF) added South Africa to its grey list. This decision from the global watchdog for financial crime signalled that the country had work to do in meeting international standards for combating money laundering and terrorist financing.
What real estate ETFs are available in South Africa?
Real estate is a popular investment option among retail investors as this asset class offers reliable long-term returns and good diversification within a portfolio, but not everyone is sold on the idea of directly owning and managing a physical property.
Investing in real estate through an exchange-traded fund (ETF), typically one that holds Real Estate Investment Trusts (REITs), offers a fundamentally different experience than physically owning and managing a property.