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Nathan1014

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student advice needed
« on: February 19, 2018, 09:35:58 pm »
Good Day

i'm currently a third year student studying finance and i need advice for a project. I'm looking for short term high yielding investment strategies. i need to identify a strategies to implement into a portfolio and then further identify 20 shares in the Jse to invest in and provide reason why i'm investing in them. if anyone can please help it would be highly appreciated.
 
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Moneypenny

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Re: student advice needed
« Reply #1 on: February 20, 2018, 07:31:15 am »
Hallo Nathan1014  :)

“Short term high yielding investment.” 

For me, that is a self-contradicting statement, oxymoron if you will.

Investment by nature implies long term, even if you could wing it somehow, tax on short term investment will bite you every time. As for the reason for investing in specific share, always the same – long term value company with tangible prospects, solid company.

Good Luck on your studies. :TU:

{Edit:  If they just want a La-La-Land answer, you could 'invest' short term for divvies & on rumour/speculation }
« Last Edit: February 20, 2018, 07:45:59 am by Moneypenny »
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Moneypenny

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Re: student advice needed
« Reply #2 on: February 20, 2018, 08:34:52 am »
Apparently I like this assignment :D

Short term ‘investing’ – or better known as ‘trading’-strategies. - Not written in stone, just what I've noticed.

When world markets down/recession – Go for resources, mining (except when annual strikes take place- coincide just before union voting :wtf: usually around Sep - wonder why)
When ECB, BoC, Fed announces QE – go for anything.
When Fitch/Moody upgrade country – go for anything but mostly Finance Stocks, Banks
When Reserve bank cut interest rates – go for finance, retailers, consumer goods
When there is a World Cup-anything, go for construction, infrastructure, tech, media
IPO’s  in big companies or new ones with huge/worldwide potential (Facebook comes to mind)
Buy on rumours of buy-outs, mergers - sell on confirmation
Buy week before LDT, sell by that Friday before close - yes you'll miss the divvy but you'll also skip the Ex-div share price on Monday - (except when it's a hugely successful company - only a temp dip so stay in and pocket divvy)
Stay mostly with Top40 when investing in SA, add a few wild cards/speculations
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Nathan1014

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Re: student advice needed
« Reply #3 on: February 20, 2018, 09:43:09 am »
Thank you very much for the reply it was very helpful. Will n keeping most if the investments within the JSE top  40 and then will ya a few wildcard stocks with betterbpeg ratios  and Comp that at stable in nature.
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Patrick

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Re: student advice needed
« Reply #4 on: February 20, 2018, 10:17:37 am »
Interesting project, basically you're trying to do the same thing that every fund manager tries to do. Most fail relative to the market given enough time.

Is your course mark based on showing out-performance, or is it on how you execute the process and what you learn from it?
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