Market Overview
Crypto Surge, Gold Decline: Bitcoin rallies as buyers shift from gold to crypto. Gold hit a current excessive of $2,800 however is now pulling again, probably in direction of $2,300-$2,400. Central banks proceed to purchase gold as a hedge in opposition to U.S. greenback dominance and geopolitical dangers.
Gold | Weekly | 13 November 2024
Rand Weak spot: The ZAR weakened above 18 to the greenback, pushed by sturdy U.S. greenback demand amidst market volatility. South African Rand overshoots as a consequence of its excessive liquidity, making it weak to sharp strikes.
Trump’s Impression on Crypto
Market hypothesis suggests Trump could also be crypto-friendly, not like the present SEC chair Gary Gensler, identified for his strict regulatory stance. Potential shifts within the regulatory panorama may gain advantage cryptocurrencies, significantly Bitcoin.
Simon holds Bitcoin and advises warning: guarantee crypto is saved in a {hardware} pockets for security.
Bitcoin | Weekly | 13 November 2024
Native Telco Sector: Vodacom & MTN
Each firms wrestle with weakened African currencies just like the Ethiopian Birr and Egyptian Pound. Earnings are impacted when transformed again to ZAR.
Regardless of engaging dividend yields (MTN ~4%, Vodacom ~5.6%), Simon stays bearish, highlighting excessive capex calls for and sector challenges.
Raubex: Building Sector Vibrant Spot
Robust outcomes from Raubex, exhibiting resilience in a struggling sector. Diversification into renewable power and mining operations boosts efficiency.
Simon notes it as one of many few high quality development performs left, alongside Afrimat.
Shopper Market Struggles
Updates from AVI and BidCorp point out persistent weak shopper demand, regardless of optimism from a doable authorities of nationwide unity. Inflation has eased, however shopper spending stays subdued as households restore stability sheets.
Retail updates present blended outcomes: Truworths reported disappointing numbers, whereas The Foschini Group* carried out higher.
Tencent Outcomes
Tencent posted sturdy outcomes, although it didn’t considerably enhance Naspers or Prosus inventory costs. The market response was muted regardless of the strong efficiency.
Closing Ideas
The market stays unstable, with important strikes in crypto, gold, and the Rand. Simon advises a cautious strategy, with a concentrate on high quality shares and long-term performs.
Keep in mind: be form and look out for others. Kindness is rule primary.
* I maintain ungeared positions.
All charts by KoyFin | Get 10% off your order
00:00 Market Overview: Crypto vs Gold
02:50 The Trump Impact on Gold and Crypto
06:01 The Way forward for the Rand and Rising Markets
08:55 Sector Evaluation: Vodacom, MTN, and Raubex
16:02 Shopper Traits and Firm Updates
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