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Showing content with the highest reputation since 12/04/2020 in all areas

  1. So I have been planning my Tax Free Investment Account portfolio for 2021 and this is what I've decided to buy in the year ahead in terms of my ETF picks: Composition: 70% Offshore Equities 20% Local Equities 10% Local Property My portfolio will then look as follows: Offshore (70%): ASHEQF: 25% STXEMG: 25% STXNDQ: 10% SYG4IR: 10% Local (30%): STX40: 7% NFEMOM: 7% STXQUA: 7% CSPROP: 10% The local picks may seem strange at 7% each, but I cannot decide between the three local equity ETFs. NFEMOM has done very well in terms of local ETFs and will probably continue to shine. STX40 contains the more resilient stocks that are most likely do perform best in difficult times. And STXQUA, well, I just love the composition of shares in the basket. My TFIA already contains ETFs in the composition above, so I'll just continue to buy in the same ratio.
    2 points
  2. It's that time of year again - albeit a very unusual year! So my personal top five stock pics for next year are as follows (in order): #1) DGH (Distell) - This one's share price has been hammered by the lockdowns and stocks are dirt cheap. But drinking never stops and eventually, sales and profits always return. This company is also huge and very resilient. If I had to choose just one stock for the coming year, it would be this one. #2) APN (Aspen) - With an agreement to produce a COVID vaccine, the exposure to this company should be massive once they begin production. #3) PPC (PPC Cement) - This one is tricky, because they have a significant debt problem to solve. If they fix their debt problem, they could be at R6.00 by the end of 2021. If they don't, they could be at 60c. But this year has been fantastic for the company. They have increased profits and reduced debt considerably. If they keep it up, good things are in store for this company. #4) DCP (Dischem) - Dis-Chem has launched it's new innovative Clinic Connect - a nurse-led healthcare system where nurses take your vitals and symptoms etc., and can video-chat a Doctor for a script should one be required, with clinic visits being substantially cheaper than Doctor visits, and you can still get a prescription. If this takes off, this could do wonders for the group. #5) SSS (Store-Age) - Largely unaffected by COVID, because people who rent storage keep renting the storage, even during tough times. With a dividend yield at over 8% and good financials, this one is bread and butter, even through terrible times. Other notable mentions: CML - Coronation L4L - Long4Life CPI - Capitec DSY - Discovery SRE - Sirius
    2 points
  3. To support economic recovery, government will not raise any additional tax revenue in this budget. The personal income tax brackets and rebates will increase above the inflation rate of 4 per cent. Government will increase excise duties on alcohol and tobacco by 8 per cent for 2021/22. Inflation-related increases of 15c/litre and 11c/litre will be implemented for the general fuel levy and the RAF levy, respectively, with effect from 7 April 2021. The UIF contribution ceiling will be set at R17 711.58 per month from 1 March 2021.
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  4. Budget Tax Guide 2021.pdf2021-Full-Budget-Review.pdfBudget 2021 Estimates Of National Expenditure.pdf
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  5. Never heard of it. For a high frequency trading bot I have setup Hummingbot which is created by traders for traders, and is open source and created with python. You can run it on your PC, or what I did was setup an instance on Amazon that can stay on 24/7 and trade. Hummingbot can connect via API to all the big exchanges, and I also have it setup to connect to ice3 locally. You can do Pure Market Making, Cross Exchange Market Making, Arbitrage etc. all the usual stuff. There is a bunch of great youtube videos by the guys who made it where they show you how to use its features. Check it out here: https://hummingbot.io/
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  6. Simon Brown always says that before you buy any stock, you should clearly be able to give three reasons why you want to buy the stock, and be prepared to stay in the trade for as long as those conditions are valid. If you can give three compelling reasons, and there are no cautionary announcements on the stock, sure, go ahead and buy the stock. However, with any penny stock, it wouldn't be prudent to buy than 10% of your shares portfolio. Otherwise it's no different to gambling.
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  7. Well, once again, Rhodium was on a different planet to everything else, with the 1nvest Rhodium ETF (ETFRHO) delivering growth of 187.1%. Originally, the reason for the stellar growth of Rhodium was the change from platinum catalysts to rhodium in the auto industry, but now I suspect that it is purely momentum. I wonder how long this can go on. Every year, I think the performance cannot be repeated and then each year is better than the last. It's kind of like Bitcoin at the moment. It could collapse at any time or could go past the moon. The top 10 performing ETFs in South Africa tracking market indices for 2020 were: SYG4IR: 68.1% (Sygnia Itrix 4th Industrial Revolution Global Equity ETF) STXNDQ: 56.1% (Satrix Nasdaq 100 ETF) ETF5IT: 49.9% (1nvest S&P 500 Info Tech ETF) SYGUS: 26.3% (Sygnia Itrix MSCI USA ETF) STX500: 24.3% (Satrix S&P 500 ETF) STXEMG: 24.2% (Satrix MSCI Emerging Markets ETF) SYG500: 23.8% (Sygnia Itrix S&P 500 ETF) ETF500: 23.0% (1nvest S&P 500 ETF) CSP500: 22.7% (CoreShares S&P 500 ETF) STXWDM: 22.0% (Satrix MSCI World ETF) Source: https://www.moneyweb.co.za/investing/etfs-investing/local-etf-returns-is-the-market-mood-shifting/ Once again, SYG4IR has had amazing performance despite having many critics in the financial world. I think with ETFs, popular is good, and as long as it remains popular, it will keep growing. In a way, I think it's similar to Rhodium - growth can carry on for many years as long as there is momentum. Also, as predicted, STXNDQ did finally overtake ETF5IT. I personally don't like ETF5IT since roughly 40% is made up of just two companies - Microsoft and Apple. I just don't see how these two companies can continue repeating their stellar financial results of 2020 year after year, but then you never know. Interesting that all of them are offshore this year - Bandit was right with his prediction. So what are your predictions for 2021? My guess is that there will be a strong rebound in local property, but let's wait and see...
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  8. If you feel you lack discipline, why not set up a recurring contribution to your ETF fund via debit order? Even a small monthly amount. You'll get the benefit of cost price averaging AND the peace of mind that you're putting away that money every month before you eat out and waste it on unneccessary stuff. Then if you want to diversify, you can always take out an additional RA.
    1 point
  9. Been another month, and today bitcoin broke through $20k, reaching a new All Time High! So far the bitcoin price is still sticking pretty close to the predicted price using the S2F model. If things continue on the same path, then 2021 is going to be an amazing year for bitcoin. So far this year has already seen great returns for bitcoin holders. This thread started with bitcoin priced at around $4k, and today it has breached $20k. Not bad at all. The last few months has seen some major players / institutions buying into bitcoin and finally joining in the party. EG: MicroStrategy first bought $250 million in bitcoin (BTC) on Aug. 11, followed by an additional $175 million worth of BTC one month later. Michael Saylor then purchased 2,574 bitcoins for $50.0 million in cash bringing the business intelligence company’s treasury holdings to approximately 40,824 bitcoins. The $475 million of excess cash in the cryptocurrency, has pushed Nasdaq-listed MSTR shares higher for weeks Now MicroStrategy has raised $650 million to buy even more bitcoin, bringing its total exposure to bitcoin to approx $1.1 billion. DBS Bank of Singapore has officially announced the arrival of its digital assets exchange, with trading to start next week. The DBS Digital Exchange is 10% owned by Singapore’s SGX stock exchange. It will also provide tokenization of securities and other assets, as well as bank-grade custody for digital assets. The new exchange will facilitate spot exchanges from fiat currencies to cryptocurrencies and vice versa Ruffer Investment (UK) did a Massive Bitcoin Buy of $744M - "Ruffer's exposure to bitcoin currently totals around £550m, equivalent to around 2.7% of the firm's assets under management" MassMutual, a U.S. life insurance company with $567 billion of assets under management announced that they purchased $100 million in Bitcoin for their general investment account. MassMutual noted that the investment is part of a broad strategy, with the goal of achieving “measured yet meaningful exposure to a growing economic aspect of our increasingly digital world." PayPal is also launching a new service enabling users to buy, hold and sell cryptocurrency. PayPal will enable cryptocurrency as a funding source for digital commerce at its 26 million merchants... Square buys $50 million in bitcoin, and says cryptocurrency ‘aligns with company’s purpose’ "Square said Thursday it bought 4,709 bitcoins, worth approximately $50 million." This represents about 1% of Square’s total assets as of the end of the second quarter of 2020. “Square believes that cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company’s purpose,” the company said in a release. Soooooooooooo what do all the 'big brains' in these companies know that the masses dont?? I think this year coming is going to be insane....lots of bitcoin press and the price will reach amazing new all time highs...but lets see how it all plays out. Luckily we are all front running these big guys, and have been dollar cost averaging into bitcoin for ages....
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  10. Just a update on ASHGEQ: The proposed restructuring was approved by the majority of shareholders.This means that ASHGEQ will now become a feeder fund (owning the ETFs that make up the index rather than owning the individual companies). So while the index will remain exactly the same, the management costs and TER for ASHGEQ should now come down significantly. The individual constituents comprising the S&P Global 1200 Index are: iShares Core S&P 500 ETF iShares MSCI Europe UCITS ETF EUR Dist iShares S&P/TSX 60 Index ETF iShares Core TOPIX ETF iShares Asia 50 ETF iShares Latin America 40 ETF SPDR S&P/ASX 50 Fund (Source: ASHGEQ SENS announcement 11 August 2020)
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  11. He's probably right but who cares - it's making me money
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  12. So let's see: TFSA +28% ETF5IT (42%) ASHGEQ (55%) STXEMG (3%) The growth here was helped by timing the crash and dip earlier this year and time. Portfolio #1 +8% SYGWD (27%) SYG4IR (42%) STXCHN (31%) Portfolio was started after the crash, so gains are partly due to the recovery (maybe?) and the recent growth we've seen over the last week. Portfolio #2 +77% ETFRHO (95%) DCX10 (5%) Ah yes, portfolio 2. Otherwise known as my **** around portfolio. Growth is largely from past performance of ETFRHO and it's been stuck in the +70 range for a while. I reckon the party is over but scared of capital gains.
    1 point
  13. So this year, the markets have gone crazy, but not altogether bad from an ETF point of view. However, the more the markets do wild things, the more I've been inclined to go for vanilla ETFs. I think I've only made one or two big changes since last year, namely selling my Coreshare's SMART ETF in favour of the Satrix Top 40, and then reducing my allocation of property (CSPROP) from 25% to 15% (I didn't sell - I'm just not buying at the moment until it's less than 15% of my total portfolio.) I used the extra 10% allocation from property to buy Satrix Nasdaq (STXNDQ). So at the moment, most ETFs are doing really well, especially the foreign ones. My Tax Free investment portfolio and it's performance (total return) looks as follows: Local ETFs (Total 45%): 10% Satrix Top 40 (STX40) - Performance in my portfolio: +0% 10% Newfunds Momentum (NFEMOM) - Performance: +7% 10% Satrix Quality (STXQUA) - Performance: -10% (Even though this is currently down, I don't want to sell this because I love the shares in this basket and see long term potential.) 15% Coreshares Property (CSPROP) - Performance: -22% (Would be much worse if not for the massive dividends). Foreign ETFs (Total 55%): 25% Ashburton Global 1200 (ASHGEQ) - Performance: +22% 10% Satrix Emerging Markets (STXEMG) - Performance: +27% 10% Satrix Nasdaq (STXNDQ) - Performance: +44% 10% Sygnia 4th Industrial Revolution (SYG4IR) - Performance: +51% ( I know Simon Brown always slams this one as just being popular rather than having actual merit, but it's been my best performing ETF and continues to perform, despite the measly dividends. I don't think I'd be comfortable with it being more than 10% of my portfolio though.) Things that I've noticed that have happened in my portfolio this year: Foreign markets have vastly outperformed local markets this year. Emerging market are outperforming developed markets this year, despite COVID (to be expected in the long term, but surprising given the current pandemic.) Tech ETFs are outperforming everything else by far. Changes that I'm going to make: I'm going to buy some Satrix China (STXCHN) after its launch tomorrow, but I don't think I'll put it in my TFIA, as it would go against my diversification policy within my TFIA. But I'm definitely going to buy a fair amount of this ETF outside of my TFIA.
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  15. "Trace" amounts, surely. I don't think we're losing out that much at all. Those offshore ETFs paying dividends etc have crappy payouts anyway.
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  16. For RA's, I'd go for a company like Allan Gray or Alexander Forbes. Companies like Old Mutual , Sanlam and Liberty Life are also reputable, but their fees tend to be higher and their returns lower in my experience (although you should do some research first to verify the facts.) I think Bandit has hit on something very, very important. If you see a financial adviser, the first thing they will try and do is sell you life insurance, because the commission on that is huge compared to the commission on an RA. Don't give in - tell them you want an RA and nothing else at this stage.
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  17. Thanks Saurus, most definitely take what you have said into consideration! I like emerging markets but I feel like with most of my exposure to SA I should probably not put as much as I like into them. Doing some research now into the other funds you mentioned!
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  18. thanks so much @SaurusDNA
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  19. "GLODIV has been doing really well lately and is likely to continue. Not so great in a TFIA though as the unpleasantly high foreign withholding tax on dividends negates a large chunk of the tax benefits though, but it still does have excellent capital gains, so maybe still even worth having in a TFIA." are the dividends taxed in a tax free savings account? foreign and local?
    1 point
  20. The 70% equities, 20% property and 10% interest bearing is the classic split. But yes, I suppose 10% dividends would make it 80% equities. But there's certainly nothing wrong with 80% equities! I'm torn between STX40 and SMART. I really like a 50/50 split between these two. PTXTEN is now merging with PTXSPY to create a new ETF (tentatively coming into effect from end July 2019). The new one is pretty much the same index as the Satrix STXPRO. Coreshares has promised to lower the relatively high TER with the merge (probably to compete with STXPRO). But you may as well flip a coin here between PTXTEN or STXPRO or watch the TERs once the new Coreshares ETF has settled in. For the dividend ETF, both DIVTRX and STXDIV are decent choices. DIVTRX targets more consistent yields in the longer term whereas STXDIV targets higher yields in the shorter term. And then again, although STXQUA is not strictly a dividend ETF, it's dividends are usually excellent. In my opinion, STXEMG has the most long term potential (although high risk), possibly even more so than tech shares. If you have a bit of appetite for risk, why not do 10% STXEMG, and then leave the ASHGEQ and go for STXWDM and/or S&P500. GLODIV has been doing really well lately and is likely to continue. Not so great in a TFIA though as the unpleasantly high foreign withholding tax on dividends negates a large chunk of the tax benefits though, but it still does have excellent capital gains, so maybe still even worth having in a TFIA. I personally like having a bit of a mix in my ETF portfolio. If I were you, I'd mix it up a little and make it a bit more exciting. What about something like: Local equities: 20% STX40 and 20% SMART Local property: 20% PTXTEN Emerging markets: 10% STXEMG Offshore: 15% CSP500 and 15% STXWDM (or alternatively 10% CSP500, 10% STXWDM and 10% GLODIV) Or if you don't like STXEMG but prefer slightly less emerging markets exposure, but still want some: Local equities: 20% STX40 and 20% SMART Local property: 20% PTXTEN Local dividends: 10% DIVTRX Offshore: 30% ASHGEQ
    1 point
  21. Haven’t seen a post under here for a while nor have I said anything for a while... Anyways- I’ve decided to give my ETFs some serious thought and this is what I’ve come up with (I’m open to all suggestions). I want my overall exposure to be 70% local and 30% offshore. Then, under both local and international holdings I was thinking about having 70% equities, 20% property and 10% dividends. Or not including the dividends because most of these would be under equities anyways and then having maybe a 80/20 split? For local: Satrix Top 40 and maybe the Coreshares Smart (equally weighted) - I know these are basically the same, but I don’t want over exposure to one share nor do I just want equally weighted, so I thought that mixing the two would give a bit of a better mix. Then for local property Coreshares PropTrax10 And if dividends perhaps Coreshares Aristocrats? International I’m a bit confused about because I’d still like a bit of emerging markets as well. So maybe: 1) Ashburton global 1200 2) Sygnia S&P 500 (I know Ashburton would have quite a few American companies in it already) For international property I’m thinking about Coreshares S&P Global And dividends would be Coreshares again or maybe an ETF from Satrix. Is this too complicated of a mix and should I rather just aim for 1 or 2 ETFs for local and international? I am trying to keep the portfolio moderately simple!
    1 point
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