THE HEDGER – A PRACTICAL NEWS TRADING STRATEGY The Hedger – An accurate wristwatch, TV news channel and a Twitter account could be all that is required to effectively apply this News Trading Strategy.It is recommended that the method be thoroughly practiced and perfected on demo accounts before applying it on a real-trading setting.  A …

Friday 25 October 2019 was a public holiday in Zimbabwe (Anti-Sanctions Day) as the country made a case for the removal of sanctions imposed by the United States of America (USA) in particular. This was a bold attempt to garner some international and regional support to assist in lifting sanctions against Zimbabwe. Piggy recalls that …

“Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value.” This is a quote by Warren Buffet on the need to put money to use through investing. The bottom line is that, “If you’re not …

One of the main constraints that most developing countries are facing today is the issue of a massive debt overhang. Zimbabwe remains a good example. According to Zimbabwe’s Mid Term National Budget, external public and publicly guaranteed debt as at the end of June 2019 was estimated at USD8.0bn, of which almost USD5.9bn is accumulated …

The Zimbabwe Revenue authority (ZIMRA) recently published its revenue performance report indicating that revenues for the Third Quarter of 2019 exceeded the set target on both gross and net positions. Gross collections for the Third Quarter of 2019 were $6.59 billion against the targeted $6.00 billion, thereby surpassing the third revised set target by 26.55%. …

There has been a lot of talk that the stock market is looking cheap in real terms and that “now” could be a best time to build positions in quality stocks. One of the hardest questions that Piggy has been trying to answer is; Which stocks should one Buy? Piggy has noted that we now …

Sean is a diligent school teacher who loves his job. He spends most of his time at his workplace, teaching Physics. For many years now, Sean has been teaching Isaac Newton’s Laws of Motion. One of the laws states that; Every action has an equal and opposite reaction. Sean has seen this law playing out …

Piggy has taken some time to analyse the 2019 Mid Term Monetary Policy Statement (MPS) that was recently issued by the Reserve Bank of Zimbabwe (RBZ). Three main highlights were (i) that the RBZ will be issuing new notes and coins given an increase in the demand for physical cash; (ii) that the RBZ rate …

Some folks have asked Piggy whether to start off by investing on the money market or stock market. The fact about the matter is that these are two asset classes with different characteristics. A money market instrument is characterized by fixed income instruments. The risk associated with money market instruments such as Treasury Bills is …

Piggy came across an interesting info-graph that tries to capture the differences in ideologies between a poor and rich person. See below; As illustrated, the difference is that rich people have an “investing” mentality whilst those that find themselves poor have a high propensity to “spend” and not necessarily “save for the future”.  It should …

Piggy has launched a new podcast; What is Piggy Saying? which is an insights and analysis show that covers Economics and Stock Markets in Zimbabwe. What is Piggy Saying? will help you keep abreast of developments on the markets as well as get insights that could be useful in our stock picking and overall investment …

Piggy believes that “The Time is Stock’o Clock”, meaning that it is a good time to take positions in shares on the Zimbabwe Stock Exchange (ZSE) and Financial Securities Exchange (FINSEC). Following on the discussion on Price Earnings Ratio (PER), Piggy also recommends using Earnings Yield for Stock Picking. The Earnings Yield is an inverse …