Missed us? Same here.

We’ve been quietly developing some exciting new wealth-building tools you’re not going to want to miss, though, – and we’ll give you exclusive insights in the next few weeks.

First, though, we’re back with a weekly newsletter that’s geared to help you:

• Increase your income

• Build your wealth

• Get you financially secure.

So, let’s dive right in, shall we?

Shining some light on 🔦 

• Notable upticks: Why BTC could start rallying in 2 weeks.

• Shipping losses, a new season for SA & the $trillion glitch.

• Stock watch: Higgo’s Top 10 stock picks for 2024 update.

• Wealth hackers: The 4 keys to building wealth today.

• The update: Exciting new financial tools for you.

THE SPOTLIGHT

Expect Some BTC Movement in The Next Few Weeks

History shows Bitcoin starts rallying about 2 months after halving – here’s who to capitalise

We’re doing something different this week and leading with a crypto investment insight. Because if you look back at history, there’s reason to believe we’re going to see another big bull run on BTC starting in the next week or two.

What it’s about 

The fourth-ever Bitcoin halving happened on 19 April 2024. And, if you look at what happened in the past after a halving, there’s (sometimes but not always) a bit of a rally leading up to the halving date, followed by a roughly 2-month plateau, as the guys adapt to the new normal, and then you see a major rally over the next 6 months, sometimes extending up to 18 months after the halving.

And, historically, the upticks have been impressive.

What it means

Bitcoin is currently at around R1.3M, and if it increases anywhere near the 2016 rate, it could be in the R1.8M range before the end of the year (R2.3M if it follows the 2020 trend).

The movements will likely start around mid-to-end June, so if you’re looking to buy low and sell high, this could be one to note.

NB: This is not financial advice, just insight based on historical trends.

STOCKS AND ALL

🛳 Headwinds: SA logistics player Santova posted a 30.1% loss on the back of a 4.5% revenue reduction due to lower shipping rates, and SA’s high corporate taxes and salaries. Higgo is sticking with the stock, though trimming position slightly since they’ll be focusing on recovery and, while still investing in growth, you’ll likely only see the benefits medium- to long-term – see the investor report here.

🇿🇦 New season: Now that the ANC has lost its 30-year-long majority, there won’t be an outright coalition but instead a Government of National Unity (GNU) which SA has some history with – it’s how the National Party transferred power to the ANC back in 1994. We can’t help thinking that how SA handles its new GNU could have a huge impact on investor trust in SA and potentially even interest rates.

🏛️ Big tank: The US trading world choked on its cornflakes when a NYSE software glitch dropped Warren Buffet’s Berkshire Hathaway's by 99.9% for 1 hour last week. Trading was halted on it and 48 other stocks until the error could be corrected and values returned to normal.

WEALTH HACKER’S KIT

How to Build Wealth

4 Key areas for your bright financial future

Building wealth requires a strategic approach. Whether you’re just starting or looking to enhance your financial strategy, understanding the core area to focus your efforts and learning helps set you on the path to financial security. 

Fortunately, we have a bit of a cheat sheet for that…

Focus 1: Earning What You’re Worth

The foundation of wealth building is earning a steady income. 

This can come from various sources such as your job, side hustles, building a business or even freelance work.

More often than not, it requires several at once: Diversifying your income streams not only increases your earning potential but also provides a safety net during economic downturns. 

Focus 2: Managing Your Money Well

Once you have a steady income, the next step involves tracking your expenses, reducing debt and ensuring you’re living within your means. 

Focus on paying off high-interest debts first, as they can quickly erode your wealth. 

And then immediately start (if you haven’t yet) prioritising savings:

• Establish an emergency fund to cover 3–6 months of living expenses

• Utilise tools and apps to monitor your spending and help build up those savings.

Focus 3: Putting Your Money to Work

Now we’re getting to the good stuff!

The key to building wealth is not how hard or smart you work for your money, but using your money to generate more income.

And, mainly, that means investing, which can come in many forms:

• Investing through financial tools (stocks, bonds, cash, EFTs etc.)

• Building a successful business or startup

• Buying and trading commodities or property

• Supplying, raising or managing capital for others to build businesses

• Foreign exchange and arbitrage trading, etc.

To name but a few.

The key factor here is that you find a way to use your money to earn interest, a dividend, profit or returns and multiply.

Focus 4: Protecting Your Wealth

Often overlooked, true financial stability means protecting your wealth and your wealth-generating interests/assets (and thus income).

It’s a step with a few parts:

• Financial planning: This is where you get professional advice on how to structure and future-proof your finances.

• Diversify your portfolio: Shifting a portion of your investments to lower-risk, long-term investments is prudent.

• Protect with insurance: Annuities, health-, life-, property-, income protection and all the necessary insurance to safeguard against significant financial losses. 

• Become tax-smart: Relook your portfolio for tax sensitivity and restructure as needed.

• Estate plans and legacy: Having an estate plan, will or even trust in place also helps ensure your wealth is protected, long-term. 

Regularly review and update your insurance policies and estate plans to reflect changes in your life circumstances.

Oh, and keep an eye out for our next newsletter on Wednesday 19 June – we’re revealing 3 brand-new top stock picks you won’t want to miss.