Mid May financial weigh in

What an interesting few weeks we have had indeed!

It has been an incredibly busy week with so much happening and markets being quite volatile, but I shall sum it up for you as best as I can.

As always, let’s start with gold. The price of gold has come down slightly, so this week for 0.1 gram of gold you are looking at an estimated value of ZAR73.60.

Of course, because it’s cheaper, I definitely recommend investing in it.

Then we come down to the stock exchange – having a look at the Satrix40. Well, I’m in the red Big Time!

Why? Well, quite simply because we just had our local government elections here in South Africa. So what does that mean? Traditionally after a local government election, the shares on the JSE don’t do so well for a short period, and actually drop in value. This time around has been no different.

But don’t worry, as the new government settles in, so will the stock exchange. However this temporary drop in value is actually a really good thing for investors. It means that shares are cheap – probably the cheapest they will be for the rest of the year, so invest in your Satrix40 fund now, and over the next few weeks and months you will no doubt be quite happy with the growth you will be experiencing.

Then we come up to crypto currencies... if you have been watching the markets you will see that Bitcoin has been increasing in value at a phenomenal rate. My advise here, as an investor is for you to NOT BUY – from an investment point of you, crypto currencies are just too expensive.

What I did this past week is I actually sold my crypto currencies (both Ethereum and Bitcoin), why did I do this?

I sold when the Bitcoin price was sitting at just over ZAR123,000 to a Bitcoin. Considering that most of my Bitcoin was purchased when the price was ZAR80,000 or less, as you can see I am sitting with quite a nice bit of profit. I am now going to hold onto this cash until the Bitcoin price corrects itself and comes down once again, at which point I will use the cash to repurchase my Bitcoin and I will actually be sitting with even more Bitcoin than I had before.

So for now, my advice is to sell and wait, and once the price comes down, repurchase more crypto with your realised profits.

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