that is the nature of binary events - no possible way to forecast something like this. Last week Zumaism killing us - on Sunday the old guard haul the ***** over the coals and bring sanity and reason back into SA governance. So we are back to our calm old selves and money pumping back in.
On the one hand I agree. BUT - (you knew it was coming) - this madness is a part of the ANC - it has always been on the cards and it will get worse. It was quite predictable for investors and even "positional traders." Long term - it's a one way bet in my opinion.
FSR needs to recover by 28% to be where it was before this drama started... if all gets 'sorted' with our new finance minister, perhaps we can normalise at this level again... if people were a bit adventurous and saw the bargain they would have bought some shares in this company on friday... hmmm. but then emotions and psychological biases were running strong in the bloods of Mr Market.
I think today is the 3rd day since the mampara's decision, so the 3 day rule worked. How about shorting the bank stocks from Wednesday again and going long gold shares? (this is a bit tongue-in-cheek but who knows?)
An interesting counter point on the DM this morning from Chris Hart: "Looking at the economic impact of the announcement, Investment Solutions economist and chief strategist Chris Hart said Gordhan's appointment will help weather the short-term but not long-term challenges. Â“Fortunately Gordhan has the gravitas and the track record and all the rest of it to inspire some confidence for the short-term,Â” he said. But the former minister implemented policies that increased debt, saw the rand fall, and increased regulation on the financial services sector leading to downgrades on SA's economy, he cautioned"
Lets see if he lasts longer than a weekend - LOL. Seriously,he has his work cut out. I want to see what happens with the nuclear deal and SAA, before I praise PM too highly.
lol. yes i have been wrong before... why i said that about mining companies is because i am very scared of them, they seem to be under so much pressure lately, wage strikes and raise demands, commodity cycle thats not attractive and then this wonderful guy we call our president isn't helping much, and i think whatever he does will hurt the economy and the future of the mines too. we will have increasing interest rates, inflation and a weaker rand, so if these mines need to find funds to help support them from overseas it will cost a lot more than before... add that together to the other factors and we don't have a very nice picture at all.. BTW: mistakes i made in the past include warrants trading on BIL in 2008, lol, not a good outcome, long term is my area and simply by selecting a few great businesses and holding them for many years one can achieve some good growth... just my thought...
Don't worry. I lost a lot on warrants in the mid 2000's. I would not advise anyone to trade in warrants until they have a proven track record trading shares. Unfortunately newbies see warrants as an easy way to make a quick buck and end up losing everything. The costs, spread and time decay just kill you. And I feel strongly about that!
Russ, i completely agree with your comment! I learnt the hard way too but also do see that if a person uses a proper strategy, maybe one that has some clever risk balancing attributes (i am working on some ideas at the moment), it could be very interesting for a portfolio, but its very advanced and not for newbies. I am a long term investor, but have realised it depends on the person, their personality and way of being which leads to the best strategy for each person and how they handle stress and all... interesting subject actually!