Is it time to switch to cyclical stocks?
With a slowdown in growth likely, professional investors like the institutional investment team at Investec are recommending a rotation away from the expensive tech stocks that delivered significant growth in 2024, and a shift in focus to cyclical stocks.
Thematic investing explained
Investors have different strategies at their disposal to express their investment thesis, with the use of a thematic investing approach gaining significant traction in recent decades.
Thematic investing is a forward-looking approach that aims to capitalise on emerging themes and predicted long-term trends rather than immediate market fluctuations or the fundamentals of individual companies.
Bubble, bubble, toil and trouble!
If there is one market phenomenon that investors fear most, it’s a stock market bubble, because when it bursts, stock prices can crash, and investors in those stocks can lose a lot of money.
Bubbles typically develop when stock prices rise rapidly, growing beyond their intrinsic value – the true value of a company based on fundamentals like earnings, assets, and future cash flows.
Clarity into the 2025 trading outlook
As another year comes to a close, it is critical that self-directed investors and traders take time to review their portfolios, assess the lessons from their 2024 trades, and conceptualise their investment thesis for the next 12 months.
The importance of constantly assessing your trading positions
A trading position is a strategic decision that involves buying, selling or holding a financial instrument, such as a stock or currency, with the expectation of profiting from future price movements.
Traders will select when to enter and exit positions based on research and in-depth analysis to maximise potential returns.
Trumpism 2.0 and markets
We explore the potential implications for markets from another Trump term
Why traders should keep a lookout for market dislocations
Temporary misalignments in asset prices, commonly known as market dislocations, present opportunities for traders to earn a profit.
These events typically occur in situations where financial markets deviate from their normal functioning and fail to accurately price assets, which usually happens under stressful or atypical market conditions.
Understanding inverse head and shoulders chart patterns
Within this toolset, a technical analysis is a valuable way to assess stocks to inform investment decisions and trading positions because it provides insights into market trends, price patterns, and potential future price movements based on historical or real-time data.
5 Steps to master trading psychology
Beyond the technical analysis, fundamental research and strategy formulation, do-it-yourself (DIY) investors and traders must also master their emotions to execute their plan and avoid making rash or impulsive decisions that can increase losses or miss out on opportunities.
Diversification strategies for DIY investors
Putting all your eggs in one basket by investing in single stocks increases the risk of potential losses, which is why professional and experienced do-it-yourself (DIY) investors believe that diversification is a fundamental element required in every considered investment strategy.