Trump’s market effects, SA homeowner optimism and the march of tokenisation, plus getting real around your credit score – and how to improve it.

It’s an exciting week for wealth builders; here’s what you need to know…

Shining some light on 🔦 

• Local & global: 3 Market trends to watch.

• JSE delistings, share price boosts & expansions.

• Earnings calendar: Who’s reporting on revenue, when.

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

• Wealth hackers: How to improve your credit score.

3 Trends to Keep Your Eye On

1. Major BTC Optimism as Trump Survives Assassination Attempt

By now you would have heard that Donald Trump survived an attempt on his life on Saturday 13 July, causing a huge rally behind Trump and potentially improving his chances of claiming the US presidency.

It’s no secret that Trump is pro-Bitcoin (and vice versa), so the weekend’s news caused a 12% surge in BTC value from $56,600 per token to $63,000 following a flat-ish two weeks.

Trump’s announcement of his Vice President choice, Ohio senator JD Vance is also telling – Vance is a huge supporter of crypto and, on Monday, even Blackrock CEO Larry Fink came out to tell reporters that he fully supports Bitcoin as a legitimate financial instrument.

2. Possible SA Interest Rate Drop

In the past few days, Investec posted their opinion that South Africa could see an interest rate cut of around 1.5% by 2025, which will mean lower repayments on loans – and much-needed relief for homeowners – and more disposable income in marketplaces in general while the increased liquidity could also be very good for asset prices.

That said, the US inflation rate has slowed down, which could lead to interest rate cuts over there, which is a good thing for high-risk assets for us here in SA. In fact, a faster US cut before SA cuts is good for the Rand, too.

3. Tokenisation of Real-World Assets is Growing

With the success of the Bitcoin ETF and excitement over the imminent launch of Ethereum ETF (expected this week or next), it’s worth mentioning that the tokenisation of real-world items such as money market funds and real estate holdings on public or private blockchains is a notable trend.

In fact, Goldman Sachs announced last week that it intends to launch at least 3 tokenisation projects this year alone. The big play here will be to create products that even traditional investors will want, but all-in-all a positive note that even traditional finance players are seriously looking into digital assets.

At the same time, the recent crypto ETF plays have paved the way for other favourite blockchain platforms like Solana to potentially do the same.

Note: This is not financial advice, merely observations. For personalised financial advice, you can book to speak to a financial advisor here (powered by a registered FSP: No. 51310).

STOCKS AND ALL

📉 Delistings Alert: Two significant companies have decided to delist from the JSE. Sasfin Holdings Limited and Bell Equipment’s exits underscore ongoing challenges such as low valuations and the high costs of maintaining a listing among strategic shifts within the South African market.

🛍️ Pick n Pay Boost: Pick n Pay's shares saw an uptick on the JSE following the awarding of 4 million shares to its CEO as part of a long-term incentive plan. Meanwhile, the company's former CEO received a R16 million golden handshake despite what was described as a strategically flawed tenure.

🌞 Capitec and Sun International Shine: Capitec's share price continues to shine following a strong profit forecast for the first half of the year. While Sun International has reported an impressive 135% growth over the past three years, attributed to strategic expansions and strong performance in its hospitality and gaming segments.

📊 Karooooo Q1 Results: Cartrack Holdings owner Karooooo is set to announce its first-quarter results on 18 July, 2024. Investors and stakeholders can join the webinar here to gain insights into the company's performance and future outlook​.

🌱 Brookfield's Expansion: Brookfield Renewable is acquiring Neoen, a European renewable energy firm, increasing its operational production by 20%. The company has delivered 74% total returns over five years and offers a strong dividend yield, reinforcing its status as a top long-term stock.

📈 Berkshire and Apple Soar: Both have hit record highs, with Morgan Stanley adding Apple to its top pick list. Berkshire Hathaway's share price continues to set new records, showcasing its strong performance.

👟 ONON Holdings Acquisition: Private Advisor Group LLC has recently acquired 14,721 shares of ON Holding AG, reflecting growing investor confidence in the athletic footwear company's market potential and strategic direction.

💼 Goldman Sachs Profit Surge: Goldman Sachs reported a 150% jump in its Q2 profit, driven by higher investment banking revenue. This substantial increase underscores the firm's strong performance and ability to capitalise on market opportunities.

UPCOMING EARNINGS REPORTS

These companies are expected to deliver earnings reports in the next few weeks:

• ASML Holdings 17 Jul 17 2024

• Omnia Holdings 19 July 2024

• Anglo American Platinum 22 July 2024

• Kumba Iron Ore 23 July 2024

• Alphabet Inc Jul 23 2024

Get Your Taxes Filed and Done

It’s tax season and the FinMeUp team is available to help you get yours done.

To book our assistance, please reply to this email or connect with us on this WhatsApp link and we’ll be happy to assist.

(Powered by registered FSP: No. 51310).

WEALTH HACKER’S KIT

6 Ways to Improve Your Credit Score

Your credit score is a crucial factor in your financial well-being. It impacts your ability to secure loans, rent apartments, and even get favourable rates on phone contracts.  

Here's how you can improve your score and unlock the benefits of good credit:

1. Check Your Credit Report

Before diving in, get a snapshot of your current standing. Services like ClearScore give you a free credit report and score, providing a benchmark to track your progress.

2. Automate Payments

Late payments can significantly damage your score. Consider setting up automatic debit orders for recurring bills like loans, memberships, and utilities. This ensures on-time payments and a steady improvement in your score. If automatic payments aren't ideal, set reminders well in advance of due dates.

3. Develop a Repayment Plan

Take control of your debt by creating a strategic repayment plan. Evaluate your current debts and prioritise paying them off efficiently. This may involve budgeting and cutting unnecessary expenses until you reach manageable debt levels.

4. Maintain Low Credit Balances

Don't max out your credit limits. Aim to keep your credit utilisation ratio (the amount of credit you're using compared to your limit) below 30%. This demonstrates responsible credit management to lenders.

5. Build a Long Credit History with a Credit Mix

Having a long history of successfully managing credit shows your ability to handle financial obligations. 

Additionally, managing various credit types (store accounts, credit cards, loans, etc.) is considered less risky than having only one type. Aim for a healthy mix to establish a strong credit history.

6. Improving Your Score Takes Time

Be patient. It takes at least 3–6 months of consistent, responsible credit behaviour to see a noticeable improvement in your score. The faster you eliminate negative factors like late payments and high credit utilisation, the quicker you'll see positive results.

By following these steps, you can build a strong credit score and unlock the financial benefits that come with it.

THE PEOPLE HAVE SPOKEN

Apart from stock insights, what content would you like more of?

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🟨🟨🟨⬜️⬜️⬜️ 📊 ⁠Investing (29%)

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🟩🟩🟩🟩🟩🟩 💸 ⁠General wealth-building tips (48%)

⬜️⬜️⬜️⬜️⬜️⬜️ Other – tell us in the comments (4%)

What you said…

We hear you, Asethemane, and that’s what we’ll do.